Bitcoin (BTC) could face a sell-side liquidity crisis in the coming months due to increasing institutional inflows, according to industry analyst Ki Young Ju, founder and CEO of CryptoQuant.

In a recent thread, Ki highlighted the possibility of a BTC supply watershed within six months if the current trend of institutional investment continues. With the rise of spot Bitcoin exchange-traded funds (ETFs) in the United States, which now hold nearly $30 billion, the demand for BTC could soon outstrip the available supply.

Ki emphasized that as long as ETF inflows continue, Bitcoin bears will struggle to push the price down. Last week alone, spot ETFs saw net flows of over 30,000 BTC, while known entities like exchanges and miners hold around 3 million BTC. At this rate, a sell-side liquidity crisis could occur within six months.

Despite daily outflows of around $500 million from the Grayscale Bitcoin Trust (GBTC), the dollar value of their BTC holdings has not significantly decreased due to BTC price gains since the ETF launch in January. This situation could exacerbate the sell-side liquidity crisis when ETF demand reaches a tipping point.

Ki predicts that once the sell-side liquidity crisis hits, the BTC price may surpass market expectations due to limited sell-side liquidity and a thin order book. Accumulation addresses, which hold BTC with only inbound transactions, continue to increase, indicating a strong demand for BTC in the market.

As Bitcoin continues to make new all-time highs, it is important for investors to conduct their own research and consider the risks involved in every investment decision. Stay informed about the latest developments in the cryptocurrency market on Global Crypto News.

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