BTC price action may be struggling, but one analyst is hoping for a “sell-side liquidity crisis.”
Bitcoin (BTC) available on exchanges is about to hit its lowest levels ever, the latest data shows.
As noted by Ki Young Ju, CEO of on-chain analytics platform CryptoQuant, exchange reserves have returned to all-time lows last seen in early May.
As of Thursday, the latest date for which figures are available, there was 2.399 million BTC available across major exchanges. May’s low measured 2.390 million.
Bitcoin traders have thus reversed a deposit trend that ensued during the mid-May price upheaval, which points to a clear return to an investment-focused — not speculation-focused — mentality.
“Hope to see another sell-side liquidity crisis on Bitcoin,” Ki added in comments.
Such a crisis, or “supply squeeze,” has formed a common narrative in recent weeks, reinforced by healthy buying up of excess liquidity from Tuesday’s price dip.
Data from fellow on-chain analytics firm Glassnode confirmed that on Friday, the section of the supply, which last moved one to two years ago, reached a three-year low.
Those who last moved BTC to an address between September 2019 and September 2020 are, therefore, not touching their holdings.
BTC/USD continued to trade below $46,000 at the time of writing Friday.
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