Bitcoin experienced a net outflow of $1.65 billion from centralized exchanges this week, according to data highlighted by Sentora. This significant movement of BTC into cold storage is creating a supply shock by reducing the immediate liquidity available on sell-side order books. At the time of the report, Bitcoin was trading near $95,260, with on-chain fees totaling $1.60 million.
Analysts view this trend as a potential tailwind for Bitcoin's price. The logic is straightforward: a shrinking available supply on exchanges can amplify buying pressure, turning modest demand into sharper price increases. This dynamic is unfolding against a backdrop where institutional demand is massively outstripping new supply. Data shows that in 2026, institutional buyers are absorbing Bitcoin at a rate roughly six times greater than the new coins issued by miners.
This demand surge, largely driven by Spot Bitcoin ETF inflows, represents a dramatic shift from earlier years. For instance, in 2024, institutional demand was approximately 913,000 BTC against a supply of 218,000. The trend continued into 2025 and 2026. A notable $840 million inflow into Spot Bitcoin ETFs on January 15th mirrored previous accumulation waves, helping to anchor BTC's price near the $96,000 level and absorb sell-side pressure.
However, the market faces crosscurrents. Regulatory uncertainty, including debates around the U.S. Digital Asset Market Clarity Act, has periodically dented confidence, causing short, sharp pullbacks. Technically, traders identify $90,000 as a key support level, with resistance lying between $97,000 and $100,000.
Macroeconomic factors also play a crucial role. The global M2 money supply is growing at its highest post-2020 rate, fueled by central bank easing and fiscal policies. Historically, such periods of expansive liquidity have correlated with strong Bitcoin bull cycles. The combination of a fixed supply, increasing institutional adoption via ETFs, and positive macro liquidity creates a structurally tighter market for Bitcoin, setting the stage for potential price expansion if these trends persist.
