June 19 (Cointime) - Bitcoin's liquidity is declining, with the Highly Liquid Supply indicator near a cycle low of 2.94 million BTC, a decrease of 620,000 BTC since January 2022. This suggests a significant contraction in the actively tradeable supply, resulting in a decline in liquidity and constrained supply.
The drop in liquidity may be attributed to crypto trading platforms losing access to dollar payment systems, and a waning appetite for Bitcoin at its recent higher levels as crypto regulation returns to the spotlight. The impact on price may result in little support for both the downside and upside, with the market subject to volatility swings until the needed injection of liquidity is achieved.
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