New analysis predicts Bitcoin to face ‘liquidity crisis’ in 6 months due to ETF

Bitcoin (BTC) is at risk of facing a liquidity crisis if institutional inflows continue, according to industry analyst Ki Young Ju. In a recent thread on X, Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, predicted that there could be a shortage of BTC supply within six months. He emphasized that as long as spot Bitcoin ETF inflows continue, bears will not be able to win in the market. Ki Young Ju pointed out that last week alone, spot ETFs saw netflows of more than 30,000 BTC, and with a total of 3 million BTC held by exchanges and miners, the chances of a supply-induced price shock are high. He also mentioned that the Grayscale Bitcoin Trust (GBTC) has been experiencing daily outflows of around $500 million, but the dollar value of its BTC holdings has not significantly declined. When the tipping point from ETF demand is reached, Ki Young Ju believes that the BTC price impact may exceed market expectations due to limited sell-side liquidity and a thin order book. He also highlighted the ongoing uptrend in BTC held by accumulation addresses, but noted that it still needs to double before the crisis sets in. It’s important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.