Grayscale Bitcoin Trust

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin (BTC) might face a liquidity crisis by September due to increasing institutional inflows.</li>
 <li>Grayscale Bitcoin Trust (GBTC) continues to experience daily outflows, despite the increasing demand for Bitcoin.</li>
</ul>
<p>Ki Young Ju, the founder and CEO of CryptoQuant, an on-chain analytics platform, has projected a possible supply crisis for <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a> within the next six months.</p>
<h2 id="increasing-institutional-demand-for-bitcoin">Increasing Institutional Demand for Bitcoin</h2>
<p>The surge in institutional investments in Bitcoin is just beginning, according to industry insiders. Bitcoin exchange-traded funds (ETFs) in the United States are gaining traction, with their current holdings nearing $30 billion, making them the most successful ETF launch in history.</p>
<p>If this trend continues, the demand for Bitcoin may outstrip supply. Ju noted that last week alone, ETFs accounted for more than 30,000 BTC. With roughly 3 million BTC in exchange and miner wallets, the possibility of a supply-induced price shock is evident.</p>
<h2 id="grayscale-bitcoin-trust-s-outflows">Grayscale Bitcoin Trust’s Outflows</h2>
<p>The Grayscale Bitcoin Trust (GBTC) is an exception to this trend, with daily outflows regularly reaching $500 million. Despite the price gains of Bitcoin since the ETF launch in January, the dollar value of GBTC’s reduced Bitcoin holdings has barely declined.</p>
<p>When the tipping point from ETF demand occurs, Ju predicts the impact on Bitcoin’s price may exceed market expectations. He noted a broad uptrend in Bitcoin held by “accumulation addresses” – wallets with only inbound transactions. However, this trend needs to double before the predicted “crisis” occurs.</p>
<p>Recent reports indicate that Bitcoin accumulation address holdings have started to cool off as Bitcoin reaches new all-time highs.</p>

Impending Bitcoin ETF ‘Liquidity Crisis’ in Six Months, Warns New Study

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