30% Decline in Bitcoin Liquidity Paves the Way for Price Increases Amid Rising Demand, According to Sygnum Analysis

Sygnum, a digital asset bank based in Switzerland and Singapore, released its monthly report on the cryptocurrency market on the 4th. The report indicates a sharp decrease in Bitcoin (BTC) liquidity supply, with conditions aligning for a price increase due to rising demand. Sygnum analyzed the situation as follows: Over the past year and a half, the assets under management of Bitcoin ETFs (Exchange Traded Funds) have steadily increased, providing more avenues to acquire Bitcoin. Consequently, exchange balances have decreased by 1 million BTC, which corresponds to a 30% reduction in liquidity supply.