According to Balaji (@balajis), recent data shows Columbia and Cornell universities are the most severely impacted by the current liquidity crunch, as detailed in a referenced analysis (source: https://twitter.com/balajis/status/1931620725598945300). This tightening of liquidity in major financial institutions signals potential ripple effects for the broader financial system, which may increase volatility in both traditional markets and cryptocurrencies. Traders should closely monitor shifts in institutional liquidity, as reduced capital flows from large entities could trigger heightened Bitcoin and Ethereum price swings and alter short-term crypto market sentiment.

According to Milk Road, Bitcoin's recent price rally has triggered a significant movement of long-dormant coins back into circulation. Coins that had been inactive for months or even years are now being sold, as there is no new issuance to meet growing demand. This shift points to a genuine supply squeeze, forcing the market to tap into deep reserves for liquidity. Traders should monitor on-chain analytics for increases in old coin movements, as these events often precede heightened volatility and can signal potential profit-taking zones or impending resistance levels. Source: Milk Road (@MilkRoadDaily, June 5, 2025).

According to Miles Deutscher on Twitter, Bitcoin ($BTC) supply on exchanges has dropped to a 7-year low of just 14%. This significant decrease in available supply on trading platforms suggests rising holding sentiment and reduced selling pressure among investors. For traders, such a low circulating exchange supply, combined with persistent demand, historically indicates potential for upward price momentum as liquidity tightens (source: Miles Deutscher, Twitter, May 14, 2025). Crypto market participants should closely monitor on-chain data and order books for further signals of supply shocks or volatility spikes.

According to Crypto Rover, Bitcoin reserves on centralized exchanges have dropped to historic lows, signaling a potential supply shock that could impact price volatility and trading strategies (source: Crypto Rover on Twitter, May 13, 2025). This sharp decline in available BTC means that liquidity is tightening, increasing the risk of rapid price movements. Traders should monitor on-chain metrics and exchange inflow/outflow data closely, as reduced supply on exchanges is often associated with bullish momentum and may trigger significant price rallies if demand spikes.

According to Crypto Rover, Ethereum ($ETH) is currently experiencing a supply shock, as highlighted by on-chain data showing a significant reduction in available ETH on exchanges (source: Crypto Rover on Twitter, May 9, 2025). This contraction in circulating supply often precedes upward price movement, making it a critical signal for traders seeking entry points. Reduced exchange reserves suggest increased long-term holding and accumulation, which can tighten liquidity and amplify price reactions to buying pressure. Traders should monitor exchange flows and on-chain metrics closely to identify optimal trading strategies as the ETH supply shock develops.

According to AltcoinGordon, the current market conditions are prompting traders to revisit old Metamask wallets, indicating a potential liquidity crunch or loss aversion strategy among traders.