CoinShares Denies Rumors of Falling Bitcoin Liquidity
Date: 2025-11-04 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
CoinShares analyst Alex Bendiksen stated that assessing Bitcoin liquidity should not be limited to counting the number of available coins. According to him, the key metric is not the number of BTC, but their total value in US dollars. This reflects the market's true ability to accommodate transactions without significantly impacting the price.
Bendiksen noted that claims by some experts about liquidity declining to critical levels appear "out of touch with reality." Despite the decline in the number of liquid Bitcoins, their total dollar value continues to increase. This is because the price increase offsets the reduced supply of coins held by investors.
According to CoinShares, the volume of liquid assets is currently almost double the peak of the previous bull cycle. Spot Bitcoin ETFs, which appeared on the Nasdaq exchange, played a significant role in this. These funds became a new source of liquidity and simplified institutional investors' access to the world's first cryptocurrency.
The analyst also shared his calculations for future price movements. He believes that for Bitcoin's price to begin rapidly rising, the market must absorb more than a million BTC annually. Only this volume of purchases could create a real shortage of coins and push the price upward.
At the same time, Bendiksen believes that the current market structure maintains equilibrium. Existing Bitcoin holders sell their holdings gradually, responding to increased demand during each rally. This process ensures a sufficient supply of coins for all market participants, preventing sharp spikes in shortages and maintaining long-term liquidity stability.
Earlier, Greg Cipolaro, head of Bitcoin research at New York Digital Investment Group (NYDIG), noted that the popular notion of Bitcoin as an "inflation hedge" is exaggerated. He emphasized that BTC's influence on inflation is not as obvious as cryptocurrency proponents often claim.
Therefore, CoinShares' position adds further support to the debate about the real state of the Bitcoin market. Despite the decline in the number of coins in circulation, the rising price and the emergence of new investment instruments are creating conditions for maintaining high liquidity.
