Glassnode CTO: That’s how bullish the Bitcoin liquidity crisis is

If whales like MicroStrategy, Square and Grayscale continue to draw on the full, the market will soon run out of Bitcoin (BTC). Since the supply of the cryptocurrency is limited, in the opinion of the Glassnode CTO there is only one variable that can be adjusted: the price. The opinion ECHO.

True to the motto: “The world is not enough”, MicroStrategy CEO Michael Saylor wants to buy more Bitcoin . For this, the corporate leader known in the scene as “Gigachad” wants to take on debt in US dollars again and exchange the proceeds for digital gold. As Saylor reported to business intelligence service Bloomberg , FOMO is still plaguing him:

We said pretty clearly that we would consider equity and debt financing … It makes sense to buy as much of this asset class as we can

Just last week it became known that the business intelligence company owns a further 19,450 BTC worth over a billion US dollars. MicroStrategy did not buy the Bitcoin with cash from its reserves (which should have been used up by now). Rather, the company, which is listed on the New York stock exchange Nasdaq, recently issued bonds, so-called senior convertible notes, and bought the coins on credit.

MicroStrategy currently holds 90,531 BTC, about 0.4 percent of all Bitcoin ever available. If Saylor is to be believed, the coins should never again be flushed to the surface of the blockchain. Bitcoiners like Saylor see BTC less as a currency and more as a store of value that can only be moved in an extreme emergency.

Is the Bitcoin faucet drying up?

The Bitcoin liquidity crisis is a prevalent theme in this bull market. In a nutshell, there is the narrative of decreasing BTC liquidity in the open market as demand increases. This, so the assumption, should have an ultra-bullish effect on the price in the short or long term. We had already reported about it in more detail here and here .

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Now Rafael Schultze-Kraft, CTO at the Bitcoin data service Glassnode, provides further evidence for the thesis.

Accordingly, the growth of illiquid BTC, i.e. those that are generally not available to the market on the supply side, is greater than the general growth in BTC supply. The latter is equivalent to around 900 BTC per day.

Since 2017, net BTC has not been available to the crypto market any more, but rather less. If you consider how aggressively Grayscale (649,130 ​​BTC) MicroStrategy (90,531 BTC) and Square (8,027 BTC) suck the coins from the market, the overall package is quite bullish. Schultze-Kraft also sees it this way:

“If you combine [the liquidity crisis] with the demand from MSTR, Square, Tesla, Grayscale and others, you will understand how bullish it is,” the analyst writes on Twitter. Well then, cheers the bull market!