Sygnum Bank: Bitcoin liquidity tightening may trigger a new round of price upward fluctuation

BTC-0.46%
ChainCatcher news, Sygnum Bank pointed out in its latest market outlook analysis that the circulating supply of Bitcoin has decreased by about 30% over the past 18 months, leading to a significant decline in market Liquidity. Analysts state that with the increase in ETF fund inflows and the rising interest of governments in Bitcoin reserves, the market may face a "demand shock", where the number of buyers far exceeds the available coin supply.
In addition, the turmoil in the U.S. Treasury market and the weakening of the dollar have increased the appeal of Bitcoin as a safe-haven asset, further driving demand for it. These factors combined may trigger upward fluctuations in the price of Bitcoin in the coming months.
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