Sygnum Bank: Bitcoin's liquidity crunch may trigger a new round of upward price volatility

PANews reported on June 4 that, according to CoinDesk, Sygnum Bank reported that a 30% decrease in the circulating supply of Bitcoin in the past 18 months may lead to increased price volatility. ETF inflows and interest in bitcoin reserves from governments have exacerbated the possibility of a "demand shock" – more buyers and fewer tradable tokens. Since the end of 2023, more than 1 million BTC have flowed out of exchanges, mainly due to hoarding by ETFs and institutions. In addition, the turmoil in US Treasuries and the weakening of the US dollar are reinforcing Bitcoin's safe-haven attributes. On the geopolitical front, three US states have passed Bitcoin Reserve Bills, and politicians in Pakistan and the UK are also considering adding BTC to their official reserves.

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