Bitcoin closes in on $100K thanks to institutional demand – Details
After declining to a 2-week low of $92,118 in the past day, Bitcoin’s [BTC] has shown resilience and made a considerable recovery.
BTC has recovered from the market crash, reaching a high of $98,125. However, it has experienced a slight pullback. At the time of writing, Bitcoin was trading at $98,086, marking a 1.25% increase over the past day.
This market strength is largely credited to the increased demand BTC is experiencing, especially among institutions, according to Cryptoquant analysis.
Rising institutional demand for Bitcoin
In their analysis, Cryptoquant observed that Bitcoin demand is surging. According to them, OTC desks are experiencing their largest monthly inventory decline of 2024. This is currently down by 26k BTC tokens for this month alone.
Since the 20th of November 2024, Bitcoin’s supply has declined by 40k BTC, signaling continued supply tightening.
The significant drop in supply indicates increased institutional demand for Bitcoin. Current market conditions position Bitcoin for a potential supply squeeze.
When Bitcoin’s supply decreases and demand continues to increase, the price typically rises. Limited supply, coupled with growing demand, drives prices up.