BTC demand surges over 400%
With large holders such as the U.S. Bitcoin Spot ETF and whales actively entering the market, Bitcoin demand has witnessed an unprecedented leap. At present, the annual demand growth rate of Bitcoin has reached an all-time high, and the market dynamics caused by the "imbalance of supply and demand" are affecting the market direction.
One of the main factors driving demand is the influx of whale investors. The holdings of whales have grown astonishingly from 874,000 Bitcoins at the beginning of 2024 to approximately 1.57 million Bitcoins. This figure shows that major investors in the market are extremely optimistic about Bitcoin.
However, in stark contrast to demand growth, sell-side liquidity is experiencing a sustained 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 available for investors to purchase Bitcoin, such as Bitcoin reserves on centralized exchanges (CEX), Bitcoin over-the-counter trading platforms, Bitcoin miners, and others. Bitcoin seized by the U.S. government.
This shows that more and more people are entering the market and are optimistic about the currency circle in the long term.
