Based

2024

Chaos

Bitcoin

Investors in Bitcoin (BTC), the world’s leading digital asset, appear reluctant to sell their coins. This development is significant considering current market dynamics with massive price decline in the last 48 hours. Despite the rapid price decrease, investors have remained unwilling to sell. 
<h2 id="b-low-bitcoin-liquidity-and-rising-demand-hints-at-looming-storm-b">Low Bitcoin Liquidity and Rising Demand Hints at Looming Storm</h2> 
According to<a href="https://cryptoquant.com/"> CryptoQuant</a>, an on-chain analysis firm, the cumulative volume of Bitcoin readily available for sale, referred to as sell-side liquidity inventory, is low. Based on the figures, the current sell-side liquidity inventory is at a level last seen in October 2020. 
Data from CryptoQuant reveals that only 3.397 million BTCs are available for sale across different platforms. These include exchanges, miners, OTC desks, and GBTC.&nbsp; 
In 2024 alone, sell-side liquidity has dropped by 678,000 BTC. The shrinking supply will impact possible selling pressure and create a tighter market demand. This could lead to a price rally if it continues as demand surges. 
<h2 id="b-will-accumulator-trigger-supply-shock-b">Will Accumulator Trigger Supply Shock?</h2> 
Meanwhile, Bitcoin demand has grown steadily since late September. Figures show Bitcoin has been growing at 228,000 BTC per month.&nbsp; 
Additionally, accumulator addresses- wallets that consistently buy Bitcoin but have never sold- are also strengthening their holdings. These addresses have increased their monthly accumulation to a record level of 495,000 BTC. 
Notably, accumulators are reckoned with in Bitcoin as they contribute to the liquidity crunch. This is because they lock BTC away from circulation. Market observers say their activities contributed to the recent all-time high (ATH) of $108,000 BTC attained this December. 
<h2 id="b-market-chaos-and-the-path-forward-b">Market Chaos and the Path Forward</h2> 
On December 20, 2024, massive liquidation hit the crypto market as<a href="https://thecoinrise.com/crypto-market-sees-1-billion-liquidation-amid-sudden-downturn/"> over $1 billion in leveraged positions were liquidated</a> within 24 hours.&nbsp;&nbsp; 
Bitcoin price plunged to a low of $92,281, leaving many investors concerned about the next price trajectory of the asset. The market soon rebounded as BTC resumed its climb and found support at the $95,000 level. 
As of this writing, BTC is trading at $97,028. Market volume remains up by 8.09% at $116.76 billion. Analysts say this hints at the confidence among some <a href="https://thecoinrise.com/bitcoins-drop-sparks-surge-in-buy-the-dip-sentiment-on-social-media/">investors who might be buying the dip</a>, anticipating that the coin could<a href="https://thecoinrise.com/institutional-demand-poised-to-propel-bitcoin-to-new-heights-by-2025-analysts/"> reclaim its position above the $100,000 level</a>. 
The post <a href="https://thecoinrise.com/bitcoin-faces-supply-shock-cryptoquant-teases-ripple-effect/">Bitcoin Faces Supply Shock, CryptoQuant Teases Ripple Effect</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

Bitcoin Faces Supply Shock, CryptoQuant Teases Ripple Effect

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