TechFlow reported, according to Bitcoin.com, that researchers from blockchain data firm Glassnode stated in a report published on November 20 that a surge in demand will challenge the relatively limited liquid supply of Bitcoin, potentially increasing volatility.
The research highlights substantial pent-up demand for spot Bitcoin ETF products, estimating that if equity, bond, and gold investors allocate just a small portion of their assets, up to $70.5 billion could flow into the market; even more conservative forecasts suggest tens of billions of dollars would enter within the initial years.
The report explains that to understand potential market dynamics following the ETF launch, attention must now turn to Bitcoin's available supply. Currently, over 76% of Bitcoin is held long-term by holders less responsive to price fluctuations, while the supply held by short-term and active traders has recently hit a multi-year low.
