Bitcoin

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-set-to-skyrocket-as-liquidity-squeeze-looms" rel="noopener noreferrer nofollow">Bitcoin Set to Skyrocket as Liquidity Squeeze Looms</a><br></p>
<p style="text-align: justify">CryptoQuant CEO Ki Young Ju has forecasted a significant liquidity crisis for <a href="https://en.bitcoinhaber.net/microstrategys-bold-bitcoin-bet-anticipates-market-surge" rel="noopener noreferrer nofollow">Bitcoin</a> within the next half-year, potentially triggering a surge in prices. This crunch, driven by a shortage on the sell-side, could push Bitcoin’s value to exceed the $100,000 mark, a scenario that might be both beneficial and challenging for the market.</p>
<h2 id="unprecedented-highs-on-the-horizon">Unprecedented Highs on the Horizon</h2>
<p style="text-align: justify">On March 11th, Bitcoin’s value spiked, pushing it to trade at unprecedented levels, briefly touching $73,000. As the crypto giant continues to trade with strong momentum, the $100,000 target appears to be the next milestone investors are eagerly eyeing. Ju points to two primary catalysts for the anticipated price explosion: the escalating institutional demand via spot Bitcoin ETFs and significant recent inflows into these funds.</p>
<h2 id="institutional-demand-fuels-bitcoin-scarcity">Institutional Demand Fuels Bitcoin Scarcity</h2>
<p style="text-align: justify">Ju’s analysis indicates that institutions are accelerating Bitcoin’s scarcity by acquiring vast amounts through spot ETFs, which allow investment without direct <a href="https://en.bitcoinhaber.net/pepe-coins-unlikely-climb-to-one-dollar-analyzing-the-odds" rel="noopener noreferrer nofollow">cryptocurrency</a> ownership. The concentration of Bitcoin among exchanges, miners, and notably, U.S. institutions—which together hold roughly 4.5 million <a href="https://en.bitcoinhaber.net/the-million-dollar-bitcoin-prediction-a-glimpse-into-cryptos-future" rel="noopener noreferrer nofollow">BTC</a>—is compounding scarcity concerns.</p>
<p style="text-align: justify">Ju warns that the confluence of heightened spot ETF demand and Bitcoin’s capped supply is setting the stage for a sell-side liquidity crisis. This scenario could create a market in which buyers significantly outnumber sellers, thereby driving up Bitcoin prices.</p>
<p style="text-align: justify">Further exacerbating the potential crisis, Bitcoin’s network is slated to halve its miner rewards come April, reducing the emission rate and subsequently the influx of new Bitcoin into the market. Should existing demand persist and investment from institutions continue to climb, this expected scarcity could dramatically disrupt market equilibrium, favoring current Bitcoin holders.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-set-to-skyrocket-as-liquidity-squeeze-looms" rel="noopener noreferrer nofollow">Bitcoin Set to Skyrocket as Liquidity Squeeze Looms</a></h5>

Bitcoin Set to Skyrocket as Liquidity Squeeze Looms

Table of Contents

BH NEWS

Other articles published on Mar 12, 2024

Mastercard Tests On-Chain Card and Advances in Web3 Payment Services

$SHIB Sets Up for Major Price Move as New Meme coin Shocks with $4 Million ICO

Trump Embraces Bitcoin: Crypto Fun and Profit

New Blockchain-Based Fantasy Game Illuvium Provides Entertainment and Earnings

Can Shiba Inu Echo Its 2021’s Surge: Analysts Weigh In

Worldcoin fails to shift ban from Spanish court

Join our free newsletter for daily crypto updates!