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

In its latest market outlook analysis, Sygnum Bank pointed out that the supply of bitcoin in circulation has decreased by about 30% in the past 18 months, resulting in a significant decrease in market liquidity. Analysts said that with the increase in ETF inflows and the increase in governments' interest in bitcoin reserves, the market could face a "demand shock", a situation where the number of buyers far exceeds the amount of coins available.
In addition, the turmoil in the U.S. Treasury market and the weakening U.S. dollar have made bitcoin more attractive as a safe-haven asset, further driving demand for it. Together, these factors could trigger upward volatility in bitcoin prices in the coming months. (CoinDesk)