Coutts Dismisses Strategy as Cause of Bitcoin Decline

A recent decline in Bitcoin's price has been attributed to various factors, including Michael Saylor's Strategy. However, Jamie Coutts, chief crypto analyst at Real Vision, disagrees with this assessment.

Coutts argues that the market reversal is more closely tied to weak demand and tightening global liquidity rather than pressure from one corporate buyer. He points out that long-term holder selling peaked last year, which is often a sign of a later stage in a market cycle.

Coutts' own risk model had previously warned of a possible top earlier than expected, although he initially thought it would only be a 30% to 40% correction. In hindsight, the warning may have identified the peak of the entire cycle.

The analyst links shrinking liquidity to competing demands for capital, including artificial intelligence companies reducing share buybacks and increasing borrowing, as well as heavy U.S. government debt issuance.