MICA Daily | Bitcoin selling liquidity has sharply decreased, indicating that the market has entered a consolidation phase.-OzABC

The liquidity of Bitcoin sellers in the market has decreased sharply, while Binance reserves have remained stable, accounting for nearly half of the market. This trend indicates that the supply is tightening and becoming more concentrated, and the market may be entering a consolidation phase before a major price change.

图片[1]-MICA Daily | Bitcoin selling liquidity has sharply decreased, indicating that the market has entered a consolidation phase.-OzABC

According to Arab Chain analysis, the supply dynamics of the Bitcoin market are undergoing a structural shift, characterized by a significant decline in overall seller liquidity, while Binance’s reserves remain relatively stable. Data from Bitcoin seller liquidity inventory (including GBTC holdings) shows total liquidity has fallen to approximately 1.27 million Bitcoins, the lowest level in recent years. This downward trend indicates a continued reduction in seller supply, particularly from whales and institutional wallets, while GBTC balances remain relatively stable.

On the other hand, data from Binance’s reserves shows that the platform holds approximately 566,000 Bitcoins, representing about 45% of the total active seller liquidity in the market. While this data reflects Binance’s continued position as the world’s largest provider of spot liquidity, its reserves have recently rebounded after a period of decline, coinciding with a global liquidity crunch. This reinforces the hypothesis that the market is entering a phase of redistribution ahead of a potentially significant price movement.

Analysis of the interaction between these two indicators suggests that the decline in global liquidity, coupled with the stability of Binance reserves, indicates that a significant amount of Bitcoin is being withdrawn from competitor exchanges and deposited into Binance. This may reflect a gradual shift in the market towards self-custody or institutional accumulation. Meanwhile, liquidity remaining within the range of 1.27 million Bitcoins suggests that the market is still in a consolidation phase, during which the supply available for sale is decreasing.

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BTC

MICA Daily | Bitcoin selling liquidity has sharply decreased, indicating that the market has entered a consolidation phase.

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