Arab Chain
Bitcoin Market Faces Liquidity Squeeze as Accumulators Dominate
data indicates that sell-side liquidity in the Bitcoin market has continued to decline significantly, reaching around 3.12 million Bitcoin, marking a historic low since 2018. Meanwhile, Bitcoin’s price stands at approximately $110,133, reflecting a continued delicate balance between decreasing supply and rising demand from long-term investors. The data also shows that demand from accumulation addresses over the past 30 days has reached 373,700 Bitcoin, a notable increase that reflects strong activity from long-term holders who tend to buy during price dips. This behavior reinforces the view that the market is currently in a quiet accumulation phase ahead of a potential new bull run. The Liquidity Inventory Ratio (LIR) has fallen to around 8.3 months, meaning that current liquidity covers less than nine months of demand—an indication of a growing shortage in sellable supply. Historically, such phases have often preceded strong price rallies as liquidity tightens in this way. Analytically, the decline in liquidity, coupled with increased demand from long-term holders, points to a favorable environment for price appreciation in the medium term. If this trend continues through the end of the fourth quarter, Bitcoin’s price could surpass $115,000, especially if accompanied by rising buying flows from U.S. investment funds and ETFs, supporting the continuation of the current bullish