New analysis reveals Bitcoin faces ‘liquidity crisis’ in six months for ETF.

Bitcoin (BTC) could face a shortage of available supply by September if institutional inflows continue, warns industry analyst Ki Young Ju. In a recent thread on X, the founder and CEO of on-chain analytics platform CryptoQuant predicted a significant BTC supply crisis within the next six months. As the popularity of spot Bitcoin exchange-traded funds (ETFs) grows, institutional investment in Bitcoin is just getting started. With nearly $30 billion in holdings, these ETFs have become the most successful ETF launch in history. However, if this trend continues, there may not be enough BTC available to meet the demand. Ki believes that until spot Bitcoin ETF inflows stop, Bitcoin bears will not be able to win the game. Last week, ETFs alone accumulated over 30,000 BTC, and with 3 million BTC in exchange and miner wallets, the chances of a supply-induced price shock are high. In addition to ETFs, the Grayscale Bitcoin Trust (GBTC) has been experiencing daily outflows of around $500 million. Despite this, the dollar value of GBTC’s BTC holdings has barely declined due to BTC price gains since the ETF launch. When the tipping point of ETF demand is reached, Ki predicts that the BTC price impact could exceed market expectations due to limited liquidity and thin orderbooks. Ki also notes that the number of BTC held by accumulation addresses is still on an upward trend, indicating that the supply crisis has not yet occurred. However, these holdings have started to cool off as Bitcoin reaches new all-time highs. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.