CryptoQuant：Bitcoin demand "devours" available inventory! The reason revealed

As demand continues to rise, industry liquidity is also increasing. The total market capitalization of stablecoins denominated in US dollars recently surpassed 20 billion dollars for the first time, growing by 20% since the end of October, which is 35 billion dollars. This reflects the liquidity of the cryptocurrency market and the influx of new funds. This growth also coincides with the rise of BTC above 100,000 dollars to 108,000 dollars. According to CoinMarketCap data, at the time of writing, the value of this crypto asset is 96,700 dollars.

In addition, Bitcoin seller liquidity currently hovers around 3.397 million BTC, the lowest level in over four years. So far this year, this liquidity has further shrunk by 678,000 BTC, greatly reducing the likelihood of selling pressure.

Moreover, the liquidity inventory ratio (an indicator measuring how many months of demand the current seller inventory can meet) has dropped from 41 months at the beginning of October to 6.6 months. CryptoQuant explains that the decline in the seller inventory ratio coincides with the BTC rebound in the first and fourth quarters of 2024.