Bitcoin is on the verge of a remarkable milestone, inching closer to $100,000 due to rising institutional demand. Recently, over-the-counter (OTC) desks recorded their most significant monthly inventory drop of the year, shedding 26,000 BTC as more institutions are stepping into the Bitcoin market.
After facing a slight setback and falling to a two-week low of $92,118, Bitcoin has shown impressive resilience, bouncing back to a high of $98,125. Currently trading at $98,086, this marks a 1.25% increase over the last day, showcasing the strong market dynamics bolstered by institutional interest.
According to an analysis by CryptoQuant, the surge in demand for Bitcoin is noteworthy. Since November 20, Bitcoin’s supply has reduced by 40,000 BTC. This sustained supply drop signals increased buying activity from institutional investors and sets the stage for a potential supply squeeze. When Bitcoin becomes scarce while demand grows, prices typically take a rise.
Moreover, AMBCrypto noted a significant uptick in the net flow of large holders, skyrocketing from -7,150 to 2,440 this past week. This upward trend points towards increased investments from institutions that could further tighten supply and push prices up.
What do the charts indicate for Bitcoin? The exchange whale ratio has dipped from 0.5 to 0.43 over the past three days. A declining whale ratio usually indicates that large holders are accumulating their stakes through OTC channels instead of on exchanges, which is a bullish sign reflecting confidence in Bitcoin’s future.
In addition, the outflow volume from exchanges has surged from 23,200 to 29,660 over the same period. Such spikes in outflows typically signify accumulation and a long-term holding strategy, highlighting a positive sentiment toward Bitcoin from investors.
As the market stands, Bitcoin is under steady demand pressure, which could allow it to breach the important $99,206 resistance level shortly. Should there be a resurgence of sellers, however, support might hold firm around $95,830.
The trend is promising, and with increased participation from institutional investors, the $100,000 milestone may soon be more than just a number. As always, monitoring both the demand and supply dynamics will provide insights into Bitcoin’s path forward. The community watches closely as this market develops, eager for what lies ahead.
