Bitcoin “Liquid Inventory Ratio” Hits All-Time Low, What It Means

 The Bitcoin “Liquid Inventory Ratio” has reached an all-time low, indicating that the sell-side liquidity of the cryptocurrency is low compared to its demand. This ratio is calculated using factors such as the total exchange reserve, miner holdings, OTC desk holdings, and US government-seized BTC. The decline in sell-side liquidity is largely due to a decrease in exchange reserves as investors increasingly opt for self-custody. Meanwhile, demand for Bitcoin has surged, particularly with the entry of exchange-traded funds (ETFs). This trend suggests that the supply of Bitcoin available for purchase is tightening. Despite a recent dip, Bitcoin’s price has recovered to over $70,200.