Bitcoin has been undergoing pre-halving retrace in the past few days. After it gained support at its first all-time high of $69,000, BTC price has bounced back, and now hovering around $70,000. Despite this, the leading cryptocurrency, Bitcoin, is facing unprecedented liquidity because of rising interest. Liquidity shortage resulting from factors like institutional investments and reduced sell-side liquidity may lead to a potential rise in Bitcoin price. This blog will explore the reasons behind Bitcoin’s lack of liquidity and how it could result in an increase in its value.
Liquidity Decreases As Demand Increases
Experts at CryptoQuant have raised concerns as the monthly Bitcoin demand has surged from 40,000 BTC at the beginning of the year to an impressive 213,000 BTC now. This increase in demand is driven by a range of reasons, such as heightened interest from institutional investors and a rising quantity of accumulation addresses. Yet, this rise in need is not met with a corres
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