Sygnum Bank: Bitcoin Liquidity Squeeze May Trigger a New Round of Price Upward Volatility
In the latest market outlook analysis released by Sygnum Bank, it is noted that the circulating supply of Bitcoin has decreased by approximately 30% over the past 18 months, leading to a significant decline in market liquidity. Analysts indicate that with the increase in ETF fund inflows and rising interest from governments in Bitcoin reserves, the market may face a "demand shock," where the number of buyers far exceeds the available coins. Additionally, the turbulence in the U.S. Treasury market and the weakening of the dollar have enhanced Bitcoin's appeal as a safe-haven asset, further driving demand for it. These factors combined could trigger upward volatility in Bitcoin prices in the coming months. (CoinDesk)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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