Odaily Planet Daily News Sygnum Bank pointed out in its latest market outlook analysis that the circulating supply of Bitcoin has decreased by about 30% in the past 18 months, resulting in a significant decline in market liquidity. Analysts said that with the increase in ETF fund inflows and the rising interest of governments in Bitcoin reserves, the market may face a "demand shock", that is, the number of buyers far exceeds the amount of available coins.
In addition, the turmoil in the U.S. Treasury market and the weakening of the U.S. dollar have increased the attractiveness of Bitcoin as a safe-haven asset, further driving demand for it. These factors together may trigger upward fluctuations in Bitcoin prices in the coming months. (CoinDesk)