Summary
TLDR: Bitcoin is facing a liquidity crisis as demand for the digital currency surges to unprecedented levels. Institutional investments and growing interest from large holders are driving this demand, leading to a significant decrease in sell-side liquidity. This imbalance could result in higher Bitcoin prices in the future.
Key Points
1. Bitcoin is facing a severe liquidity crisis due to a surge in demand for the digital currency, with monthly demand skyrocketing from 40,000 BTC to 213,000 BTC.
2. The increase in demand is attributed to factors such as growing total balance of accumulation addresses, institutional investments through spot ETFs in the US, and a rise in the total balance of Bitcoin whales holding between 1,000 to 10,000 BTC.
3. The sell-side liquidity of Bitcoin is decreasing, with the total visible amount of Bitcoin at key entities dwindling to 2.7 million BTC. This imbalance between high demand and decreasing sell-side liquidity has led to a historic low in the liquid inventory of Bitcoin.