Bitcoin Poised for Record High as Supply Dwindles
Bitcoin is on the verge of setting a new record high.At $104,000, it needs just a 4% increase to surpass its all-time peak of $109,300.
The key factor driving this potential surge is the shrinking supply of Bitcoin. Data from CryptoQuant reveals that Over-The-Counter (OTC) desk liquidity has plummeted to 120,000 BTC, the lowest in years. This is a far cry from the nearly 500,000 BTC recorded in late 2021.
Centralized exchanges, such as Binance adn Coinbase, also show a significant drop in Bitcoin supply. Currently, there are only 2.17 million BTC on these platforms, down from 2.72 million in January 2024. This is the lowest in over six years.
The dwindling supply is bullish, especially with rising demand. For instance, spot Bitcoin ETFs have seen an influx of over $40 billion since january last year.
Corporate adoption is another positive sign. Strategy, a notable company, holds 568,500 BTC, worth around $59 billion. This figure represents about 2.7% of all Bitcoins that will ever exist. Other companies like Next Technology and Cango are also investing in Bitcoin.
- This trend could spread as more firms follow Strategy’s lead, whose market cap has risen from $1 billion to over $115 billion since it started buying in 2020.
- Governments might join the bandwagon. Donald Trump’s proposal for Strategic bitcoin Reserves could inspire countries like Ukraine and the Czech Republic to explore Bitcoin.
Technically, Bitcoin is consolidating around $104,000, forming a bullish pennant pattern. A break above $108,420 could lead to an all-time high of $109,300 and beyond. The 50-day and 100-day Exponential Moving Averages are trending upward, signaling strong bullish momentum.
