Bitcoin Liquidity Crisis Strikes Crypto Market
Bitcoin Liquidity Crisis Strikes Crypto Market
Bitcoin faces a severe liquidity crisis as demand for the digital currency soars to unprecedented levels.
Monthly Demand Surges
According to analysts at CryptoQuant, monthly demand for Bitcoin has skyrocketed from 40,000 BTC to 213,000 BTC.
Institutional Investments and Whales
Institutional investments through US ETFs and an increase in large holders, or 'whales,' are amplifying Bitcoin demand.
Decreasing Sell-side Liquidity
The total visible amount of Bitcoin at key entities has decreased significantly, creating a historic low in the liquid inventory of Bitcoin.
Bullish Future Predicted
The convergence of these factors suggests a bullish future for the price of Bitcoin, with potential corrections and a max drawdown projected in bull markets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.