A recent report from Cryptoquant has brought attention to the shrinking sell-side liquidity in the Bitcoin market. This phenomenon, known as the Bitcoin supply shock, is causing a decrease in the amount of Bitcoin available for sale.
The report highlights how fewer Bitcoins are being held on exchanges, indicating that investors are holding onto their Bitcoin rather than selling it. This trend is leading to a decrease in the overall supply of Bitcoin available for purchase, creating a scarcity that could potentially drive up the price of the cryptocurrency.
The decreasing sell-side liquidity in the Bitcoin market is a significant development that could have a major impact on the cryptocurrency’s price in the near future. Investors should keep an eye on this trend as it may signal a shift in the market dynamics and potential opportunities for profit.