CryptoQuant CEO: Bitcoin is building its own "paper layer ecosystem" through ETFs, MSTR and funds

CryptoQuant founder and CEO Ki Young Ju tweeted that this round of altcoin season is different from the past, with greater challenges and only a few projects standing out. Despite good market sentiment, there is limited additional liquidity. He pointed out that Bitcoin is building its own "paper second layer ecosystem" through ETFs, MSTR and funds, gradually separating from the cryptocurrency ecosystem, which weakens the linkage between altcoins and Bitcoin. Some altcoins have shown independent trends attracting new liquidity. Ki Young Ju believes that there are two ways for altcoins: one is to create paper derivative versions similar to Bitcoin; the other is to use stable coins or Bitcoin to build a real Internet currency ecosystem. He advises investors to pay attention to altcoins with these two potentials and hold them in the long term.

He also pointed out that Coinbase's bitcoin trading volume significantly decreases on weekends, indicating institutional brokers mainly trade on weekdays. Over the past two years, the gap between weekday and weekend trading volumes has continued to widen. He reminds investors that before this trend reverses they should avoid shorting bitcoin otherwise they may face liquidation risks due to institutional investors such as Michael Saylor and participants in Bitcoin ETFs.