CryptoQuant: Current Bitcoin seller liquidity inventory is expected to only meet 6 to 12 months of demand

According to CryptoQuant’s latest weekly report, as demand for Bitcoin skyrockets and seller liquidity dwindles, its liquid stock has plummeted to an all-time low (in terms of monthly demand). Analysts expect current liquidity inventories from Bitcoin sellers to be sufficient to meet demand growth for 6-12 months at current rates. According to the report, monthly demand for Bitcoin has risen from 40,000 coins in early 2024 to 213,000 coins currently. CryptoQuant measures demand by the growth in the total balance of cumulative addresses (addresses that only receive and hold Bitcoin) over a 30-day period. These addresses hold more than 10 Bitcoins, have no outflows, are not affiliated with any CEX or mining pool, and have been active for the past seven years. The sharp rise in demand for Bitcoin is driven by the U.S. Bitcoin Spot ETF and other large holders such as whales. Analysts found that year-on-year growth in total whale balances reached its highest level ever. Whales now hold approximately 1.57 million Bitcoins, a significant increase from the 874,000 Bitcoins recorded in early 2024. While demand surges, sell-side liquidity continues to decline. The number of Bitcoins held by sell-side liquidity entities hovers around 2.7 million Bitcoins, down from the all-time high of 3.5 million Bitcoins set in March 2020. These entities have viable liquid assets from which investors can purchase Bitcoin. These include Bitcoin reserves at CEXs, Bitcoin OTC trading venues, Bitcoin miners, and Bitcoin seized by the U.S. government. (Crypto Potato)