Bitcoin Liquidity Data Hints Possible All-Time-High for the BTC Price, According to CryptoQuant CEO

According to Ki Young Ju, the founder and CEO of on-chain analytics provider CryptoQuant, Bitcoin liquidity data hints possible all-time-high for the BTC price.

on-chain analytics provider CryptoQuant says that Bitcoin liquidity data could be hinting at an all-time-high for the BTC price.

“Stablecoins alone can't provide enough buy-side liquidity for Bitcoin,” the firm's founder and CEO Ki Young Ju wrote on X.

According to CryptoQuant, the BTC-to-stablecoin ratio is currently 6.05, indicating that BTC reserves are six times higher than stablecoins. This ratio was also seen during BTC's last all-time-high.

CryptoQuant says that this ratio is crucial because it determines the amount of BTC that can be purchased with stablecoins. For instance, if a user wants to buy BTC with Tether (CRYPTO: USDT) and the BTC-to-stablecoin ratio is 2, then they can buy two BTC with 1,000 USDT.

However, if the ratio increases to 6, then the user can only buy 1.6 BTC with 1,000 USDT, showcasing how higher liquidity is needed for BTC to reach new all-time-highs.

BTC price struggles to break through: Bitcoin price hit $70,000 on Tuesday and continued rising that day to reach a multi-month high of $73,600. In doing so, it came within $150 of breaking its March all-time-high of $73,740.

However, it failed to do so, despite the community largely anticipating this to occur at any given moment, and began losing its value gradually.

The most substantial correction occurred on Friday morning when it dumped below $69,000 to lose three grand within hours.

Bulls stepped up during the trading day, with Bitcoin climbing to $71,500 following the weaker-than-expected U.S. jobs report for October.

It once again failed at that point and now trades around two grand lower. At press time, Bitcoin trades at $69,610.

BlackRock still bullish: The sell-off comes as broader market dynamics played out, with Bitcoin spot ETFs seeing a net outflow of $54.9 million on Nov. 1, following a week of net inflows.

However, BlackRock’s IBIT still saw strong demand, with a record $875 million single-day inflow on Oct. 30.

Collectively, spot Bitcoin ETFs saw inflows of $917.2 million on that day, marking the highest since March. Despite this sustained investor interest, Bitcoin's price fell below $70,000 on Friday.