Bitcoin (BTC) could face a shortage of available supply by September if institutional inflows continue, according to industry analyst Ki Young Ju, founder and CEO of on-chain analytics platform CryptoQuant. In a recent thread, Ki predicted a watershed moment for BTC supply within the next six months. The rise of spot Bitcoin exchange-traded funds (ETFs) in the United States has led to an increase in institutional investment in Bitcoin, with ETFs now holding nearly $30 billion and becoming the most successful ETF launch in history. However, Ki warns that if this trend continues, there may not be enough BTC available to meet demand. Last week alone, ETFs accumulated over 30,000 BTC, and with approximately 3 million BTC held by exchanges and miners, the potential for a supply-induced price shock is evident. Ki also mentioned that the Grayscale Bitcoin Trust (GBTC) has been experiencing daily outflows of around $500 million, but despite this, the value of GBTC’s BTC holdings has hardly declined. When the tipping point from ETF demand is reached, Ki believes that the impact on BTC prices may exceed market expectations due to limited sell-side liquidity and a thin order book. Ki also noted that BTC held by “accumulation addresses” (wallets with only inbound transactions) is still on an upward trend, but it needs to double before a potential supply crisis occurs.
New analysis: Bitcoin faces 'liquidity crisis' in 6 months for ETF