Sygnum Bank: Bitcoin liquidity crunch may trigger a new round of price volatility

Odaily News Sygnum Bank pointed out in its latest market outlook analysis that the circulating supply of Bitcoin has decreased by about 30% in the past 18 months, resulting in a significant decline in market liquidity. Analysts said that with the increase in ETF inflows and the rising interest of governments in Bitcoin reserves, the market may face a "demand shock", that is, the number of buyers far exceeds the amount of available coins.
In addition, turmoil in the U.S. Treasury market and a weaker dollar have made Bitcoin more attractive as a safe-haven asset, further boosting demand for it. These factors combined could trigger upward volatility in Bitcoin prices in the coming months. (CoinDesk)