Zhu Su Offers Perspective on Bitcoin's Long-Term Health Amid Investor Exits

LiquidityHunter · 2026-02-13T17:05:56+00:00

Zhu Su of Three Arrows Capital argues that the exit of early Bitcoin investors is a natural and positive development for the cryptocurrency's market lifecycle. He challenges the belief that early investors' retention is crucial for Bitcoin's survival, highlighting a need to understand the risks in corporate Bitcoin strategies. He also warns about the emotional pitfalls in market timing through examples of investors facing significant losses.

LiquidityHunter

2026-02-13 17:05:56

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In early February, Zhu Su, the co-founder of Three Arrows Capital, provided a fresh take on the ongoing departure of early Bitcoin investors from the market. Rather than viewing this trend as detrimental, Zhu Su argues that veteran investor exits represent a natural and ultimately positive part of Bitcoin’s market lifecycle. His commentary comes after a period of relative silence that extended through late September, making his recent resurgence in the public conversation particularly noteworthy.

Understanding Bitcoin’s Historical Token Distribution Pattern

According to BlockBeats’ coverage of Zhu Su’s remarks, the exit of these original stakeholders should not be perceived negatively. Since Bitcoin’s launch, early investors have been progressively liquidating their holdings, and each phase of token distribution has strengthened rather than weakened the cryptocurrency’s long-term fundamentals and monetary properties. Zhu Su contends that Bitcoin’s survival has never depended on any individual investor’s holdings. If the network’s viability relied solely on continuous accumulation and retention by early backers, Bitcoin would have succumbed to market pressures decades ago. This perspective challenges the common narrative that founder and early investor commitment is essential to a project’s survival.

Clarifying the MicroStrategy Bitcoin Narrative

Zhu Su also addressed widespread assumptions about MicroStrategy’s high-profile Bitcoin strategy, noting that CEO Michael Saylor functions more as the public face rather than the driving force behind the company’s crypto holdings. The actual financial risk exposure from MicroStrategy’s substantial Bitcoin position falls on MSTR shareholders, not on Saylor personally. This distinction matters significantly for investors evaluating the true risk profile of corporate Bitcoin positions.

Market Timing and Overconfidence: Recent Cautionary Tales

Following his quiet period and re-emergence at January’s end, Zhu Su commented on the cautionary cases of investors Yi Lihua and 1011, who faced significant losses after prematurely re-entering the market. These investors had initially exited at market peaks—a prudent move—but subsequently allowed overconfidence to drive them back into positions at inopportune moments. Their experience underscores the dangers of emotional decision-making in volatile market environments and serves as a reminder that timing the market carries substantial risks for even experienced participants.

BTC4,21%

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