Bitcoin’s Deflationary Impact: Insights from CryptoQuant Founder Ki Young Ju on MSTR’s Illiquid Holdings

On May 10th, 2023, COINOTAG News reported insights from CryptoQuant founder Ki Young Ju, emphasizing the deflationary nature of Bitcoin. He revealed that corporate entities, particularly MicroStrategy (MSTR), are acquiring BTC at a pace that outstrips its mining rate. Currently, MSTR holds approximately 555,000 BTC, a sum deemed illiquid without intentions to liquidate. This accumulation alone indicates an annual deflation rate of -2.23%. When integrating the stable holdings from various institutional investors, the overall deflation rate for Bitcoin could potentially rise even further, indicating a tightening supply. Such market behaviors could lead to enhanced scarcity, influencing the long-term value perception of Bitcoin in the cryptocurrency landscape.