Bitcoin’s Liquid Supply Drops 30% Amid Rising Demand Trends
Bitcoin's circulating supply has decreased by 30% in the last 18 months, according to Sygnum Bank's market outlook. This reduction may lead to potential price volatility as demand increases.
Key points include:
- Liquid supply constraints are creating conditions for price shocks.
- Over 1 million BTC withdrawn from exchanges since late 2023, driven by ETFs and corporate hoarding.
- Liquidity pressure on traders during price spikes is increasing.
- Bitcoin is gaining traction as a safe haven amid U.S. Treasury turmoil and a weakening dollar.
- Investors are returning to Bitcoin and gold due to falling Treasury prices and rising federal debt.
- New demand catalysts include U.S. states passing Bitcoin reserve bills, with New Hampshire already signed into law.
- International interest is growing, with countries like Pakistan considering official BTC reserves.
The current crypto cycle appears to be ongoing, with several factors supporting Bitcoin's position in the market.