Bitcoin’s price has experienced a sharp decline of approximately 10% over the past week, making this February one of the worst months for the cryptocurrency since 2018. Despite the downturn, CryptoQuant CEO Ki Young Ju remains unfazed, arguing that only inexperienced investors would sell during such a dip.
In a post on X (formerly Twitter) on February 27, Ki highlighted that price corrections of up to 30% are typical in Bitcoin bull cycles. He referenced a past scenario where Bitcoin dropped by 53% in 2021, only to recover and reach an all-time high. According to Ki, reacting impulsively to price fluctuations is a poor investment strategy. “Buying when prices rise and selling when they fall is the worst investment strategy,” he warned, advising investors to adhere to a well-defined plan rather than panic.
“You’re way too early to panic. Seeing people panic here is kinda cute tbh,” he added, suggesting that the current market conditions do not justify fear-driven sell-offs.
His comments come amid reports that institutional investors may be offloading significant amounts of Bitcoin. Blockchain analytics firm Arkham Intelligence reported that major financial institutions—including Fidelity, ARK Invest, and Grayscale—had sold portions of their Bitcoin holdings as the asset’s price dipped below $90,000.
The extent of these sales remains unclear, but Arkham’s data revealed that BlackRock, the world’s largest asset manager, liquidated approximately $150 million worth of Bitcoin. Despite this sale, data from BiTBO indicates that institutions continue to maintain substantial Bitcoin holdings, with BlackRock’s clients collectively owning over 583,320 BTC—valued at around $50.2 billion.
Market liquidations have also surged in response to Bitcoin’s declining price. According to CoinGlass data, more than $765 million in leveraged positions were liquidated within the last 24 hours alone, adding to the $1.5 billion wiped out on February 25. Additionally, data from SoSoValue revealed that February 25 saw the largest single-day withdrawal from spot Bitcoin ETFs since their inception, with $937.78 million pulled from these funds.
Bitcoin’s recent decline aligns with a broader market downturn that began following Donald Trump’s election victory in January. Initially, optimism surrounding a potentially more crypto-friendly regulatory environment led to a surge in Bitcoin’s value, peaking at $109,225. However, as expectations for swift pro-crypto policies waned, a wave of sell-offs ensued.
Despite the current uncertainty, Ki Young Ju and other industry experts emphasize that short-term volatility is a natural part of Bitcoin’s market cycles. Investors who remain patient and follow a strategic approach may find opportunities amid the turbulence rather than succumbing to panic-induced decisions.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist