The post Institutional Demand and Supply Squeeze Propel Bitcoin to $106,000, Indicating Potential for Continued Growth appeared on BitcoinEthereumNews.com.

Bitcoin has made headlines by soaring to an all-time high of $106,000, driven by unprecedented institutional demand amidst a tightening supply environment. As on-chain analysis reveals a sharp decline in balances across OTC desks, demand for Bitcoin continues to surge, leading to a critical supply squeeze. “The depletion of OTC desk balances signals that institutions are aggressively accumulating, thereby reducing available supply in the market,” a source from COINOTAG confirmed. This article examines Bitcoin’s surge to $106,000 due to institutional demand overpowering supply, leading to a significant market rally. Bitcoin’s Record-Breaking Momentum Driven by Institutional Accumulation Recent developments indicate that Bitcoin’s current momentum is heavily influenced by a growing trend of institutional accumulation. An analysis by CryptoQuant highlights a steep decline in OTC desk balances, marking the sharpest drop within this year. Over the last month, OTC balances have diminished by approximately 25,000 BTC, with a total of 40,000 BTC leaving these desks since late November. Source: CryptoQuant This reduction in OTC desk reserves demonstrates a clear trend among institutional investors to accumulate Bitcoin aggressively, subsequently limiting availability for the general market. As institutional purchases rise, the diminishing availability of Bitcoin resets market dynamics, highlighting a critical shift in investor profiles. Increasing Demand vs. Limited Supply: A Critical Market Analysis The noticeable shift in supply dynamics coincides with an increase in apparent demand, as portrayed in the Bitcoin Apparent Demand chart. Since November, apparent demand—tracking net Bitcoin absorption—has exhibited consistent growth, underscoring the relentless appetite for BTC amidst the ongoing market rally. Source: CryptoQuant As demand eclipses supply, Bitcoin’s price has surged through critical resistance levels, achieving its recent high of $106,000. This ongoing trend indicates a robust market environment where demand consistently outstrips available incentives. Price Action Signals Sustained Bullish Sentiment Recent price action illustrates solid bullish sentiment within…

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Filed under: News - @ December 18, 2024 3:20 am