CryptoQuant CEO Ki Young Ju has forecasted a significant liquidity crisis for Bitcoin within the next half-year, potentially triggering a surge in prices. This crunch, driven by a shortage on the sell-side, could push Bitcoin’s value to exceed the $100,000 mark, a scenario that might be both beneficial and challenging for the market.
Unprecedented Highs on the Horizon
On March 11th, Bitcoin’s value spiked, pushing it to trade at unprecedented levels, briefly touching $73,000. As the crypto giant continues to trade with strong momentum, the $100,000 target appears to be the next milestone investors are eagerly eyeing. Ju points to two primary catalysts for the anticipated price explosion: the escalating institutional demand via spot Bitcoin ETFs and significant recent inflows into these funds.
Institutional Demand Fuels Bitcoin Scarcity
Ju’s analysis indicates that institutions are accelerating Bitcoin’s scarcity by acquiring vast amounts through spot ETFs, which allow investment without direct cryptocurrency ownership. The concentration of Bitcoin among exchanges, miners, and notably, U.S. institutions—which together hold roughly 4.5 million BTC—is compounding scarcity concerns.
Ju warns that the confluence of heightened spot ETF demand and Bitcoin’s capped supply is setting the stage for a sell-side liquidity crisis. This scenario could create a market in which buyers significantly outnumber sellers, thereby driving up Bitcoin prices.
Further exacerbating the potential crisis, Bitcoin’s network is slated to halve its miner rewards come April, reducing the emission rate and subsequently the influx of new Bitcoin into the market. Should existing demand persist and investment from institutions continue to climb, this expected scarcity could dramatically disrupt market equilibrium, favoring current Bitcoin holders.