The CEO of blockchain intelligence platform CryptoQuant is convinced that a possible upcoming off-season will not be like the previous ones, for one important reason.

On-chain analyst Ki Young Ju shares with his 381,200 followers on the social media platform

The analyst says there is now massive traditional financial participation in Bitcoin, including through BTC exchange-traded funds (ETFs) on the spot market and increased buying by software company MicroStrategy (MSTR).

“This alternate season will not be what you expected. It will be strange and challenging. Only a select few will win the game. Market sentiment is good, but there is not much fresh liquidity. Bitcoin is moving away from the crypto ecosystem. Bitcoin has built its own paper-based Layer 2 ecosystem through ETFs, MSTR, funds and more. With this paper-based L2 Bitcoin, bridging to other altcoins is impossible.”

He also shares a chart showing Bitcoin’s price correlation with altcoins. A value of 1 is the highest correlation, whereas the lowest possible correlation is 0.

“Altcoins used to move together due to their correlation with BTC, but this pattern has now been broken. Few are starting to show independent trends as they attract new liquidity.”

The analyst notes that BTC ETFs have accumulated so much in the spot market that they are believed to have been mined by the pseudonymous Bitcoin founder Satoshi Nakamoto in the early days of the cryptocurrency’s existence.

“Bitcoin spot ETFs now hold as much BTC as Satoshi Nakamoto (Patoshi).”

He also says investor demand for the ETF product is back to its all-time high.

“Demand for Bitcoin ETFs is as high as it was when they were first approved this year.”

Don’t miss a thing – Subscribe to receive email alerts straight to your inbox

Check price action

Keep following us XFacebook and Telegram

Surf the Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated image: Midjourney