Bitcoin’s BTC circulating supply is thinning out with an estimated 30% drop in liquid BTC over the last 18 months, a steep drain that could set the stage for potential upside volatility in the coming months, a Sygnum Bank’s market outlook said Tuesday.“Bitcoin’s liquid supply is getting severely constrained while positive demand trends continue, creating the foundation for upside shocks in the price,” analysts wrote, adding the rise of ETF inflows, along with governments increasingly open to bitcoin reserves, is fueling speculation about a “demand shock” scenario, where too many buyers chase too few coins.Over a million BTC has been withdrawn from exchanges since late 2023, Sygnum said, with ETFs and corporate treasuries driving the hoarding. That’s putting added pressure on traders who need liquidity to exit during spikes or to cover shorts
source: https://www.coindesk.com/markets/2025/06/04/bitcoin-liquidity-crunch-points-to-fresh-volatility-as-new-cycle-builds-sygnum-bank