The monthly demand for Bitcoin has reportedly surged to nearly 213K tokens within 2024. The crypto analytics platform CryptoQuant has disclosed that along with this demand spike, the token’s availability has slumped to 2.7M, indicating the tightest liquidity. As per the reports, whale activity has played a significant role in driving the jump in demand from 40K to above 213K BTC.
Bitcoin’s Demand Reaches Insane Highs While Token Availability Drops Vertically
In addition to this, the ETFs also take credit for this development to a great extent. In the meantime, the currently available tokens are just 2.7M and signify the most restricted liquidity since 2020’s March. The historical statistics and the current market scenario point toward a likely looming liquidity crisis for the top crypto asset. However, it remains to be seen how the biggest cryptocurrency reacts to these developments.
The increase in the token’s demand to such unprecedented levels during 2024 paves the way for several apprehensions. A huge spike in ETF purchases has contributed a lot to the respective demand growth. Nonetheless, following that the big investors have additionally endeavored to raise their [ccpw id=60415] allocation to take credit.
The Imbalance between Demand and Supply May Lead to Short-Term Price Spikes
On the other hand, the supply of the top crypto token for selling is continuously plunging. The cumulative evident coin amount at the chief platforms is approximately 2.7M tokens. This dropped from the all-time-high figure of up to 3.5M tokens that was reached back in 2020’s March.
Due to the enormous slump in the supply, the speculations say that Bitcoin could go through a crucial supply contraction. At the moment, the imbalance between demand and supply proposes the possibility of short-term price rises. Even then, it brings to the front the significance of carefully observing the liquidity levels.
