$BTC Bitcoin Predicted to Experience a Sales Liquidity Crisis in Six Months!

CryptoQuant CEO, Ki Young Ju, has expressed his concerns regarding the possibility of a Bitcoin sales liquidity crisis in the next six months.

He indicated that this could be due to the growing trend of Bitcoin Spot ETF inflows, which recently reached a trading volume of US$10 billion.

In his view, this could trigger an unprofitable increase in Bitcoin prices for potential buyers who hope the price will fall. Ju emphasized that the “Bears” (dip hunters) will not profit until inflows into spot Bitcoin ETFs stop.

According to Ju, if inflows into ETFs do not stop, Bitcoin prices will likely exceed expectations, and a selling liquidity crisis could officially occur.

He said that this crisis would occur if the accumulation addresses collectively held three million BTC, while at the moment, the addresses only hold 1.6 million BTC.

Meanwhile, data from BitMEX research shows that Bitcoin ETFs in the US now hold nearly 4% of the total Bitcoin supply, amounting to 776,464 BTC worth US$47.7 billion. Additionally, the US government is another large holder, with it estimated to control up to 215,000 BTC worth $13.23 billion, or about 1.1% of Bitcoin's circulating supply.

Meanwhile about 10% of Bitcoin's supply is on crypto exchanges, slightly more than is owned by miners. However, there is uncertainty regarding the address associated with Bitcoin's creator, Satoshi Nakamoto, with whom no transactions have occurred. The address is estimated to contain between 600,000 BTC and 1.1 million BTC, equivalent to 3% to 5.6% of the circulating supply.

Meanwhile, a study from Chainalysis in 2020 suggested that around 3.7 million BTC may be lost forever, meaning 19% of the supply may never move again. #DYORR