Early Warning: Bitcoin (BTC) Liquidity Decline Makes Investors Wary

Updated

June 25, 2025

Gambar Early Warning: Bitcoin (BTC) Liquidity Decline Makes Investors Wary

Jakarta, Pintu News – According to the latest analysis from market intelligence firm Swissblock, there is one Bitcoin metric that points to potential concerns for the major crypto asset. Swissblock, in a post on social media platform X, highlighted a sharp decline in on-chain liquidity that they claim needs to improve soon for Bitcoin (BTC) to make gains.

On-Chain Liquidity: The Key to Bitcoin (BTC) Price Stability

At the same time as the rest of the market has consolidated back into $btc, we have seen a drop off in our onchain liquidity.

🔹 For bullish continuation we need to see an uptick again in onchain liquidity

For more information: https://t.co/YTaTFa97Nt pic.twitter.com/OmSYXxOvaF
— Swissblock (@swissblock__) June 21, 2025

On-chain liquidity refers to the ease and efficiency of buying or selling Bitcoin (BTC) without significantly affecting the price. When liquidity is low, it indicates that there are not enough buyers to absorb sell orders, which can trigger a price drop.

Swissblock notes that this rapid decline in liquidity is “a cause for concern” and indicates a decrease in overall activity within the Bitcoin (BTC) network. This decline has coincided with market consolidation returning to Bitcoin (BTC), but has not been followed by a significant increase in on-chain activity. This makes Bitcoin (BTC) price more vulnerable to downside volatility, especially if there is no increase in on-chain liquidity.

Long-term Market Structure Still Bullish

Despite declining liquidity conditions, Swissblock asserts that the long-term market structure for Bitcoin (BTC) still looks solid. This bullish structure will remain intact as long as risk signals remain at zero. This suggests that despite the “liquidity flush”, the long-term bullish structure still exists and could support a price recovery.

The analytics firm added that the decline in activity on the Bitcoin (BTC) network makes the price more correlated with on-chain dynamics than external factors. This means that the restoration of on-chain liquidity will be crucial to maintaining the bullish trend.

Recommendations for Investors and Market Watchers

Under current market conditions, investors and market watchers are advised to closely monitor on-chain liquidity indicators as one of the important factors in making investment decisions. Improved liquidity conditions could be one of the first signals of a recovery or strengthening of the Bitcoin (BTC) price.

Also, given the volatility that may occur, it is important for investors to diversify their portfolios and not rely too heavily on short-term predictions. Understanding the market structure and on-chain dynamics will provide an advantage in navigating the often unpredictable crypto market.

Conclusion

While there are concerns regarding the decline in on-chain liquidity, the opportunity for recovery is still wide open provided the risk factors are properly managed. Investors are expected to remain vigilant and stay updated to make informed decisions on crypto investments.

Also Read: Dogecoin Continues to Slump: Is this $480 Utility Coin the Wiser Choice in the Crypto World?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.