Syz the moment

Bitcoin faces a “sell-side liquidity crisis” by September if institutional inflows continue, an industry analyst says. In a thread on X on March 12, Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant, predicted a BTC supply watershed “within six months.” Bitcoin as an institutional investment allocation is only just getting started, industry participants have said, as United States-based spot Bitcoin exchange-traded funds (ETFs) gain momentum. Now holding nearly $30 billion, they have become the most successful ETF launch in history. Should the trend continue, however, a new phenomenon could arise where THERE WILL BE NOT ENOUGH BTC AVAILABLE TO MEET DEMAND. “Bears can’t win this game until spot Bitcoin ETF inflow stops,” Ki summarized. He noted that ETFs alone put away more than 30,000 BTC last week, and with 3 million BTC in exchange and miner wallets, the odds of a supply-induced price shock become clear. “Last week, spot ETFs saw net flows of +30K BTC. Known entities like exchanges and miners hold around 3M BTC, including 1.5M BTC by US entities,” he continued. “At this rate, we’ll see a sell-side liquidity crisis within 6 months.” Given BTC price gains since the ETF launch in January, popular commentator WhalePanda notes, the dollar value of GBTC’s diminished BTC holdings has, in fact, barely declined. “The problem is that with the price going up and their massive outflows, their holdings in $ are still same as where we started at.” When the tipping point from ETF demand comes, Ki forecasts the BTC price impact may be beyond market expectations. “Once a sell-side liquidity crisis happens, its next cyclical top may exceed our expectations due to limited sell-side liquidity and thin orderbook,” he concluded. To avoid the liquidity crisis, we need to see whales starting to move their BTC to exchanges and sell them. This should happen if BTC price hit higher levels. The law of supply and demand... Source: www.zerohedge.com

Source: Dylan LeClair

Source: Bloomberg

Every day, rinse repeat. Blackrock's ETF just bought the most bitcoin in one day on record. Source: www.zerohedge.com

$58.7b for $BTC $98b for Gold That's just after just 8 weeks... At this rate, Bitcoin will flip Gold ETFs in a few month! Source: Bitcoin Archive

Spot BTC ETFs had their first $1+ billion inflow day. Source: Jim Bianco, Bianco Research

The current price ($73k) continues to follow the pattern. Like clockwork... As a reminder, "Plan B", a Dutch institutional investor, has tried to predict the theoretical value of bitcoin over time. This quantitative model, which is based on asset scarcity, was published on March 22, 2019. Called "Stock-to-flow," the model predicted a rapid rise in bitcoin's value to $55,000 once the May 2020 halving occurred. It then predicts Bitcoin to hit $100k in 2024, $500k in 2025. At the time of Plan B’s first publication, bitcoin was trading below $5,000. Source: PlanB @100trillionUSD

According to a report by Kaiko Research, BTC’s latest rally is creating about 1500 millionaire wallets daily. However, despite the increase in Bitcoin (BTC) millionaire wallets, Kaiko Research notes that the number of millionaire wallets created daily during the 2021 bull run was closer to 4000, more than double the current number. According to Kaiko Research, low millionaire wallets could be due to the lack of new capital. The report notes, ‘In 2021, there was a huge influx in capital as all manner of bull sought to benefit from the crypto hype. This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.‘ https://lnkd.in/eabkjiHh