Since 2024, Bitcoin's circulating supply on exchanges and OTC desks has significantly decreased, with exchange reserves dropping over 20% and OTC balances falling by about 36%. This tightening of supply, concurrent with increased global liquidity, is creating conditions that analysts interpret as bullish for BTC.
Bitcoin has maintained a price level above $100,000 for nearly four weeks and recently rallied to around $110,000. The decreased availability of Bitcoin on exchanges and OTC platforms reflects a trend of investors moving holdings into cold or custodial wallets, indicating a potential for a supply crunch amid rising demand from retail, institutional investors, and corporate treasuries.
Technical analysis supports this optimism, showing a breakout from a flag pattern with price targets projected to reach as high as $137,000. Negative funding rates observed in perpetual futures in tandem with rising spot prices suggest strong demand absorption despite selling pressure on shorts.
Experts highlight the role of the global liquidity index (GLI) surge and the highest money supply levels in three years as factors that could further boost the price. Market sentiment, supported by strategic buying and institutional participation, positions Bitcoin for potentially substantial gains if current dynamics persist.