Sygnum Bank has highlighted a potential liquidity crunch in the Bitcoin market, noting a 30% decrease in circulating supply over the past 18 months. This reduction in liquidity, coupled with increased ETF inflows and growing government interest in Bitcoin reserves, could lead to a demand shock where buyers outnumber available coins. Additionally, instability in the U.S. Treasury market and a weakening dollar are enhancing Bitcoin's appeal as a safe-haven asset, potentially driving further demand. These factors may contribute to increased price volatility for Bitcoin in the coming months.