Bitcoin Liquid Inventory Ratio Hits Record Low, What's the Impact?

Bittime - CryptoQuant founder Ki Young Ju recently revealed that Bitcoin's (BTC) liquid inventory ratio has hit a record low. This indicates that there is a lack of sellers in the BTC market currently.

What is Liquid Inventory Ratio?

The liquid inventory ratio is calculated by dividing the seller's total inventory by the 30-day change in BTC balance of the accumulated address. This ratio shows the amount of BTC that is ready to sell compared to the amount of BTC purchased by long-term investors.

A low liquid inventory ratio indicates that there are fewer sellers willing to sell their BTC. This can cause buying pressure on the BTC price and push it up.

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What Causes a Low Liquid Inventory Ratio?

Several factors can cause a low liquid inventory ratio:

• Bullish sentiment: Investors are bullish on BTC and do not want to sell it.
• BTC supply decline: BTC mining is becoming increasingly difficult and there is less new supply available.
• Accumulation by institutional investors: Institutional investors started buying BTC in large quantities.

Also Read: What is Bearish?

What are the Implications of a Low Liquid Inventory Ratio?

A low liquid inventory ratio can be a bullish indicator for BTC. This shows that there is strong demand for BTC and could push the price up.

However, it is important to remember that the liquid inventory ratio is just one of many factors that can influence the price of BTC. Other factors such as macroeconomic conditions, regulations and market sentiment can also play an important role.

Therefore, investors must always do their own research before making investment decisions.

Also Read How to Buy Crypto:

Tips for Investors

Here are some tips for investors who want to invest in BTC:

• Diversify portfolio: Don't just invest in BTC.
• Use stop-loss orders: Limit losses by using stop-loss orders.
• Don't invest more than you can afford: BTC is a high-risk asset.

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How to Buy Crypto with 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.

Also Read: 

Mining Bitcoin vs Validating Bitcoin Transactions

What is Bitcoin Halving and How Does It Affect Bitcoin?

Bitcoin Futures and Bitcoin Options: Bitcoin Financial Contracts, What's the Difference?

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.