PiCK
[Analysis] "Bitcoin (BTC), Network Growth Despite Liquidity Contraction... Surge Expected with Capital Inflow"
Summary
- Bitcoin is reported to be continuing its network growth even in a situation where liquidity is weakening.
- There is a forecast that Bitcoin could surge again if capital inflow occurs.
- It was stated that a similar trend could repeat as seen in the cases of December 2020 and February 2021.
Bitcoin (BTC) is observed to be experiencing a contraction in liquidity while its network growth continues. There is also a forecast that Bitcoin could surge again if capital inflow increases.
On the 30th, 'Negentropic', the account of Glassnode's founder, stated on X (formerly Twitter), "Bitcoin's liquidity is weakening, but the network's growth is stable," and analyzed that "if liquidity flows back in, there is a possibility of a price surge." If Bitcoin's price does not fall significantly and network growth is maintained, the likelihood of a future surge increases.
Negentropic explained, "Previously, in December 2020 and February 2021, a similar trend was observed," adding, "At that time, liquidity was withdrawn due to adjustments, but network growth continued. Subsequently, as liquidity flowed back in, prices rebounded strongly."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.