$86K Barrier: Bitcoin’s Liquidity Crunch Under Scrutiny (More analytical and professional
Cryptoquant’s recent report warns of a potential Bitcoin downturn, citing a drastic 75% drop in demand since December 2024 and a significant liquidity slowdown.
Analysts attribute this decline to inflation concerns, potential tariffs, and reduced ETF inflows, which reversed from positive to negative. Institutional participation weakened, and network activity fell to yearly lows, with the Bitcoin Network Activity Index dipping below its 365-day moving average.
Stablecoin liquidity growth collapsed, and U.S. spot demand, measured by Coinbase inflows, slowed considerably. Cryptoquant identifies $86,000 as a critical support level, cautioning that Bitcoin prices may test this threshold if demand and liquidity do not improve.
Clever Robot News Desk 20th February 2025
