The Bitcoin scarcity index on Binance, the world's largest cryptocurrency exchange, has spiked for the first time since June 2025, according to fresh data from CryptoQuant. This significant movement indicates a sudden tightening of Bitcoin supply, typically triggered by large withdrawals from exchanges or a sharp drop in sell orders.
The index jump suggests that immediate buying power has overwhelmed market liquidity, often creating scenarios where investors race to acquire BTC before prices move higher. Historically, such spikes have coincided with institutional players or large whales buying aggressively, as seen in June when the index remained elevated for several days and Bitcoin rallied to nearly $124,000.
However, analysts note that the recent spike was followed by an equally rapid plunge, raising questions about whether this reflects genuine accumulation or speculative activity. CryptoQuant observed that this contrast—between high prices and the index's rapid return toward neutral territory—indicates some weakening in buying momentum, particularly if supply increases or exchange withdrawals slow.
Bitcoin's price is currently consolidating around $115,479, trading between the 200-day SMA near $82,600 and resistance at $123,217. The 50-day SMA at $109,580 is acting as dynamic support, while the broader market braces for the US Federal Reserve's imminent decision on interest rates, which could significantly impact price action in the coming days.