According to data from CryptoQuant, Bitcoin demand is growing rapidly, while seller liquidity has dropped to the lowest level since 2020, with market demand exceeding supply. Since September 2024, Bitcoin's monthly demand has grown to 228,000 BTC, but the available Bitcoin supply has significantly decreased. These supply sources include cryptocurrency exchanges, OTC platforms, miners, and Bitcoin held by Grayscale Bitcoin Trust.
Additionally, long-term investors are actively entering the market, with the holdings in Bitcoin 'accumulation addresses' reaching a new high with a monthly increase of 495,000 BTC. At the same time, the Bitcoin inventory on over-the-counter (OTC) platforms decreased by 26,000 BTC, further dropping by 40,000 BTC since November 20. The analysis team believes that OTC platforms primarily serve institutions and large buyers, reflecting that demand significantly exceeds supply.
As of now, the liquidity of Bitcoin sellers is only 33.97 million BTC, having decreased by 678,000 coins this year, further reducing market selling pressure. In addition, the liquidity inventory ratio (the number of months existing inventory can meet demand) has dropped from 41 months in October to 6.6 months, indicating that demand in the Bitcoin market is rapidly growing while supply and liquidity are significantly shrinking.
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"MICA Daily｜Data: Bitcoin Demand Soars, Supply Drops to 2020 Low" This article was first published on (Blockke).
