Strategy Bitcoin Sales Will Boost Price, Says DWF Labs, as CryptoQuant Founder Predicts 'Parabolic Rally'

His comments come as DWF Labs Managing Partner Andrei Grachev told CCN Strategy's recent decision to sell portions of its Bitcoin holdings could ultimately support its long-term price outlook.

Michael Saylor's company recently disclosed its second Bitcoin sale in recent weeks, raising approximately $216 million by selling 3,588 Bitcoin between June 29 and July 5.

The move has divided the industry, with Grayscale Research arguing the sales reduce the firm's financial risks, while longtime Bitcoin critic Peter Schiff warned they could mark the beginning of sustained selling pressure.

CryptoQuant Founder Says Institutions Hold Key to Next Bitcoin Rally

Ju said Bitcoin likely has another "parabolic cycle ahead."

Writing on X, Ju said Bitcoin's weakening capital does not mean its long-term bull market has ended; rather, it shows the asset's growing maturity.

According to Ju, Bitcoin's early rallies required relatively little capital compared with today.

He said approximately $2.7 billion in net capital inflows helped drive a 55,436% gain during the 2011 cycle, while roughly $697 billion in this cycle has generated a 689% return.

Ju added that doubling Bitcoin's price has also become significantly more capital-intensive.

"In 2011, just $5 million in net capital inflows was enough to double Bitcoin's price," he said.

"In this cycle, it took roughly $101 billion to double it."

Despite that trend, Ju argued that another explosive rally remains possible if institutional investors continue to increase their allocations.

"The next parabolic bull cycle will likely require trillions in net capital inflows, which means institutional adoption needs to truly take off."

He added that Bitcoin would likely need to absorb more than $1 trillion in realized capitalization before another parabolic advance becomes possible.

Ju argued that the asset still has considerable room to grow, given gold's roughly $27 trillion market capitalization.

Strategy Sales Could Be Positive for Bitcoin Price, Says Grachev

In an interview with CCN, Grachev echoed that institutional demand has become increasingly important for Bitcoin, arguing Strategy's latest sale showed the market could absorb corporate selling when ETF inflows remain strong.