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.

12.18K

The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.