CryptoQuant founder advises Strategy to suspend cryptocurrency purchases until cash reserves and dividend coverage are restored.

CryptoQuant founder Ki Young Ju has published an article bluntly stating that Strategy’s current Bitcoin purchases function more as a liquidity absorber than a price catalyst. Over the past two years, Bitcoin’s realized market cap has surged by $467 billion, yet its price has dropped by 1%. Even with hundreds of billions in inflows, ongoing trading activity has failed to lift prices. Ki Young Ju notes that in the current environment of sharply rising selling pressure, Strategy’s buying is focused more on defending a price range than driving a breakout. Worse, continuous purchases may hinder a market-clearing deep correction, instead providing more holders with liquidity to take profits. Comparing the current cycle to the classic Bitcoin sequence of crash, capitulation, weak hands exiting, and whales reaccumulating, the market has spent nearly two years in a wide sideways range—neither strong enough to confirm a new bull market nor weak enough to trigger real capitulation. This has left weak hands unable to fully exit and strong hands failing to actively reaccumulate, meaning the market may need a full reset to build a stronger recovery. Ki offered three recommendations to Saylor: First, pause Bitcoin purchases until cash reserves and dividend coverage are restored; Second, establish a systematic, model-driven buying framework to change the market’s perception that Strategy always buys at local peaks; Third, build a disciplined selling framework for the next bull market—selling a portion near cycle highs is not betraying Bitcoin, but deleveraging, realizing shareholder value, and creating ammunition to reaccumulate at lower prices. This is not trading, but risk management.