Bitcoin’s Path to New Peaks Amidst Liquidity Crisis
According to the co-founder and CEO of CryptoQuant, Ki Young Ju, Bitcoin (BTC) seems to be on the verge of facing a significant decrease in available sell-side liquidity.
He higlights that until the influx of spot Bitcoin exchange-traded fund (ETF) ceases, the advantage remains with Bitcoin bulls.
Bears can't win this game until spot #Bitcoin ETF inflow stops.
Last week, spot ETFs saw netflows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities.
At this rate, we'll see a sell-side liquidity crisis within 6 months. pic.twitter.com/qwAbZJwSOl
— Ki Young Ju (@ki_young_ju) March 12, 2024
In the previous week, there was a noticeable influx of approximately +30,000 BTC into spot ETFs. Notably, entities such as exchanges and miners currently possess around 3 million BTC collectively, with US-based entities accounting for 1.5 million BTC.
This trend suggests a looming sell-side liquidity crisis, anticipated to manifest within the next six months.
Bitcoin presently finds itself navigating through the price discovery phase. Should a sell-side liquidity crisis materialize, the subsequent cyclical peak may surpass expectations due to constrained sell-side liquidity and a sparse order book.
READ MORE: Bitcoin is Already in a Serious Bull Market, According to Popular Crypto Analyst
Young Ju suggests this scenario could unfold once accumulation addresses collectively amass around 3 million BTC.
Furthermore, Young Ju observes that the current market sentiment appears to be midway towards Bitcoin euphoria. Despite active retail on-chain activities, there are no clear indicators signaling a cyclical peak.
Given Bitcoin’s current phase of price discovery, accurately discerning whether the market has reached a cyclical peak remains crucial.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
