Key Points
- Bitcoin’s institutional demand is on the rise, contributing to its market strength.
- OTC desks recorded their largest monthly inventory drop for 2024, indicating a potential supply squeeze.
Bitcoin is witnessing a surge in demand from institutions, contributing to its market resilience.
In the face of a decline to a 2-week low of $92,118, Bitcoin (BTC) has shown considerable recovery, reaching a high of $98,125.
Rising Institutional Demand
Cryptoquant’s analysis indicates a surge in Bitcoin demand, particularly among institutions.
OTC desks have experienced their largest monthly inventory decline for the year, dropping by 26k BTC.
This decline in supply, coupled with rising demand, could potentially lead to a supply squeeze.
Market Indicators
In addition to Cryptoquant’s analysis, other market indicators also suggest a bullish outlook for Bitcoin.
Bitcoin’s exchange whale ratio has decreased over the past three days, suggesting that large holders and institutions are accumulating BTC through OTC markets or private transactions.
Moreover, Bitcoin’s outflow volume from aggregated exchanges has risen, indicating accumulation and holding behavior among investors.
The growing institutional demand and the potential for a supply squeeze are contributing to an upward pressure on Bitcoin prices.
If current sentiments persist, Bitcoin could potentially reclaim the $99,206 resistance in the short term.
However, if sellers reenter the market, Bitcoin could find support around $95,830.