Bittime – A recent report from on-chain analytics platform CryptoQuant on March 26 revealed that Bitcoin (BTC) is facing an unprecedented “sell-side liquidity crisis.”
This analysis highlights a significant increase in Bitcoin demand, especially in relation to Bitcoin exchange-traded funds (ETFs) in the United States.
Bitcoin Liquidity Supply Plummets to Lowest Point
The impact of drastically increased demand for Bitcoin was felt, with sell-side liquidity decreasing significantly.
CryptoQuant notes that Bitcoin's liquid supply has hit its lowest point in recent months, signaling a possible liquidity crisis in the market.
Bitcoin's decline in sell-side liquidity is fueling concerns about supply's ability to meet surging demand. CryptoQuant analysis shows that only half of current demand can be met by the supply available on United States exchanges.
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Old Coin Movement: The Phenomenon of “Waking Up” Old Supply
CryptoQuant CEO Ki Young Ju described this sell-side liquidity crisis as “waking up” the legacy Bitcoin supply.
Data shows that a large number of coins mined in 2010 and inactive since then, suddenly moved to newly created wallet addresses.
Ki Young Ju also highlighted the impact of Bitcoin trading fund (ETF) inflows, which have broken records recently.
While it was previously projected that supply pressure from ETFs would be felt in the next six months, recent inflows show signs of reversing that trend.
Also Read How to Buy Crypto:
Conclusions and Future Prospects
Although Bitcoin faces significant sell-side liquidity challenges, recent inflows into Bitcoin ETFs suggest that the market still has the potential to weather this crisis.
However, further developments in the inflow and outflow of funds as well as the movement of legacy coins need to be monitored closely to understand their impact on Bitcoin price and liquidity.
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How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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