Institutional investors who bought BTC through on-chain transactions do not appear to be selling their cryptocurrency, according to the CEO of CryptoQuant.
In the face of Thursday’s massive market downturn, just as some industry executives questioned Bitcoin’s (BTC) digital gold narrative, other experts still support the digital gold narrative, arguing that it’s in the hands of giant whales like MicroStrayegy Always valid until investors cash out.
Ki Young Ju, CEO of South Korean on-chain analytics resource CryptoQuant, tweeted on Thursday that his platform had not observed any “massive on-chain activity” as of 11 a.m. UTC.
Institutional investors who bought bitcoin through on-chain transactions don’t appear to have sold their crypto assets yet, Ju wrote, “institutions running algorithmic trading bots think BTC belongs in tech stocks.”
“I would choose to hold on until Michael Saylor sells Bitcoin,” said the CryptoQuant CEO, adding that he remains supportive of the digital gold narrative for now:
“I believe we can pre-detect whale sales activity on-chain. My view is that as long as these institutions hold bitcoin, the digital gold narrative remains valid.”
“Agreed. There is no apparent on-chain activity in this crisis.
1/ Institutions that bought BTC via on-chain txns do not seem to have sold yet.
2/ Institutions running algorithmic trading bots see BTC as a tech stock.
I'd rather hold on until @saylor sells #Bitcoin. "
— Ki Young Ju ??? (@ki_young_ju) February 24, 2022
On Wednesday, Vijay Ayyar, vice president of corporate development at Luno cryptocurrency exchange, questioned the reliability of Bitcoin as digital gold, arguing that it was too early to consider BTC as digital gold.
"Bitcoin is still early on its maturity curve and doesn't fall under the category of 'digital gold'," he argued. Ayyar noted that in order to compete more effectively with gold as a store of value, bitcoin needs to achieve wider adoption .
As previously reported, MicroStrategy is one of the largest public Bitcoin investors in the world, with over 120,000 BTC as of January 31, 2022. The company is sticking to its hoarding strategy despite the cryptocurrency plummeting from highs above $69,000 in November 2021 to its current value below $40,000.
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