Sygnum Bank: Bitcoin liquidity tightening may trigger a new round of price upward volatility

ChainCatcher news, Sygnum Bank pointed out in its latest market outlook analysis that the circulating supply of Bitcoin has decreased by about 30% over the past 18 months, leading to a significant decline in market liquidity. Analysts indicate that with the increase in ETF inflows and the rising interest of governments in Bitcoin reserves, the market may face a "demand shock," where the number of buyers far exceeds the available supply of coins.

Additionally, the turmoil in the U.S. Treasury market and the weakening of the dollar have enhanced Bitcoin's appeal as a safe-haven asset, further driving demand for it. These factors combined may trigger upward volatility in Bitcoin prices in the coming months.