CryptoQuant: Bitcoin demand surges by more than 400%! Seriously short of supply

This site (120btC.coM): No seller found for Bitcoin! The latest data shows that Bitcoin is facing unprecedented demand growth and tight liquidity on the selling side. Bitcoin liquidity reserves jumped to all-time lows as demand soared, signaling a potential sell-side liquidity crisis in the coming months.

The demand for BTC surged by more than 400%

In the middle of this month, BTC broke through a record high of $73,000 and continued to fluctuate at a high of $70,000. Blockchain data analytics firm CryptoQuant revealed the staggering increase in demand for Bitcoin in a report this week.

According to data from CryptoQuant, the monthly demand increased from 40,000 BTC in early 2024 to 213,000 BTC at the time of writing, with the demand increasing by as much as 432%. Separately, CryptoQuant analyzed addresses holding and owning BTC and found that the number of addresses whose total balance has grown to exceed 10 BTC in the past 30 days is also increasing. The value of this increase in demand is that the amount held by these addresses above 10 BTC will continue to increase without any outflow and without the intervention of any centralized exchange or mining pool.

According to data from CryptoQuant, large holders such as U.S. Bitcoin spot ETFs and whales have actively entered the market, and Bitcoin demand has witnessed unprecedented growth. Currently, annual demand growth for Bitcoin is at an all-time high, as market dynamics providing demand support are driving market trends.

surge in whale investors

According to the analysis, one of the main factors driving demand growth is the massive influx of whale investors. As of now, whale holdings have grown astonishingly from 874,000 Bitcoins at the beginning of 2024 to approximately 157 million Bitcoins. This figure shows that major investors in the market are extremely optimistic about Bitcoin.

However, in sharp contrast to the growth in demand, sell-side liquidity is experiencing a continued decline. Currently, the amount of BTC in sell-side liquidity is approximately 2.7 million BTC, which is significantly lower than the 3.5 million BTC in March 2020, which was the highest level in history.

These liquidity sellers include entities with liquid assets for investors to purchase Bitcoin, such as Bitcoin reserves on centralized exchanges (CEX), Bitcoin over-the-counter trading platforms, Bitcoin miners, and Bitcoin seized by the U.S. government.

According to CryptoQuant’s analysis, the current state of Bitcoin’s sell-side liquidity inventory can only meet demand for the next twelve months. This is based on the current rate of demand growth and Estimated based on cumulative address requirements. It’s worth noting that this estimate only refers to a low-level range of Bitcoin demand, suggesting that the actual situation may be more serious.

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