CryptoQuant CEO: Bitcoin Bull Cycle to Continue Until Significant ETF Outflows

CryptoQuant CEO Ki Young Ju has expressed his belief that Bitcoin’s bull market will continue as long as the demand for Bitcoin ETFs remains positive.

In a post on X (formerly Twitter) on February 20, Ju mentioned that although Bitcoin ETF inflows have slowed, they still outpace outflows. He cautioned, however, that a prolonged period of net outflows could signal the start of a bear market.

Recent data from SoSoValue revealed that Bitcoin ETFs recorded $71.07 million in outflows on February 19, marking the second consecutive day of redemptions. Fidelity’s FBTC saw the largest withdrawals at $48.39 million, followed by other ETFs such as Valkyrie’s BRRR and ARK 21Shares’ ARKB. However, BlackRock’s IBIT and several other ETFs saw no significant movement. Despite the short-term outflows, total trading volume remained strong at $2.05 billion.

Despite these short-term outflows, institutional interest in Bitcoin ETFs remains on the rise. For instance, on February 14, the Mubadala Investment Company, Abu Dhabi’s Sovereign Wealth Fund, revealed it had invested $436.9 million in BlackRock’s IBIT shares. Mubadala is one of the first major sovereign wealth funds to allocate part of its portfolio to crypto.

Additionally, Barclays disclosed on February 13 that it owned 2.47 million shares of IBIT, valued at $131 million as of December 31. Other institutions like JP Morgan and Goldman Sachs have also increased their exposure to Bitcoin ETFs.

Bitcoin’s price is currently hovering around $97,000, a significant drop from its peak of $109,200 last month. One of the factors contributing to this decline could be a lack of confidence in the Trump administration’s ability to swiftly establish a Strategic Bitcoin Reserve. Many investors had anticipated that the market would move quickly after the election, but uncertainty has led to increased volatility.

In conclusion, while short-term ETF outflows have occurred, the overall demand for Bitcoin ETFs is still positive, suggesting that Bitcoin’s bull cycle could persist. However, sustained outflows may indicate the start of a bear market.