Will Bitcoin's Short-Term Recovery Spark Selloff?
2026-02-09 • Ian Irizarry
TL;DR
CryptoQuant CEO Ki Young Ju warns that without a strong Bitcoin rebound soon, the risk of cascading institutional sell-offs could rise, potentially impacting companies seeking funding. Understanding these market dynamics is crucial for businesses navigating the current financial landscape.
What’s Going On with Bitcoin Right Now
Bitcoin's price recently slipped under $85,000, which is quite a drop from the $109,000 peak it hit in January 2025. Here’s the thing: this dip has investors and companies on edge. Ki Young Ju, the CEO of CryptoQuant, points out that if Bitcoin doesn’t bounce back in the next month or so, we might see a wave of institutional selling that could trigger a domino effect of liquidations. That could shake things up big time. BloomingBit News
How Big Institutional Sellers Can Shake the Market
Institutions really move the needle in crypto markets. When they buy or sell in bulk, it can send Bitcoin prices soaring or plummeting. Ju has noticed that big chunks of Bitcoin hitting the market often hint at forced selling. This can spark a chain reaction—liquidations leading to even more selling. Miners, in particular, might face bankruptcy risks if prices keep falling. It’s a tricky cycle. MEXC News
What This Means for Companies Hunting for Funding
For startups and tech companies looking to raise money, this market rollercoaster matters a lot. To put it simply:
Investor Mood: Falling Bitcoin prices can kill investor enthusiasm, making it harder to secure funding.
Asset Value: If your company holds Bitcoin, your valuation could take a hit, which isn’t great when courting investors.
Market Shakiness: When the market is all over the place, big investors tend to hit pause until things calm down.
One practical caveat: even if you diversify, sudden market crashes can still impact your funding prospects, so don’t rely on diversification alone to shield your business.
Tips to Stay Afloat in This Market
So, what can companies do? Here are a few ideas:
Mix Up Your Assets: Betting everything on Bitcoin isn’t wise. Other assets can help soften the blow.
Be Open with Investors: Keep your backers in the loop about what’s happening and how you’re tackling the situation.
Watch the Market Closely: Following trends and expert forecasts can help you steer smartly through rough waters.
Honestly, keeping a close eye on the market and communicating well often makes a big difference.
Frequently Asked Questions
Q: How does Bitcoin's volatility affect institutional investors?
A: High volatility can deter institutional investors due to the increased risk. However, as Bitcoin's volatility decreases, it becomes more attractive to these investors. FXStreet: Bitcoin volatility and institutional investors
Q: What are cascading liquidations?
A: Cascading liquidations occur when a significant drop in asset price triggers automatic sell orders, leading to further price declines and additional sell-offs.
Q: How can companies protect themselves during market downturns?
A: Companies can protect themselves by diversifying assets, maintaining transparent communication with stakeholders, and staying informed about market trends.
Understanding the current Bitcoin market dynamics is essential for companies seeking funding. By staying informed and adopting strategic measures, businesses can navigate these challenges effectively.