3 weeks Ago
The change is a sign that investors are becoming more confident and are transferring their Bitcoin to private wallets for long-term holding. That helps trim the immediate selling pressure in the market.
OTC Reserves Also Dropping to Lows
The supply at OTC trading desks, where large deals take place away from public exchanges, has been dropping too. To execute trades quickly, these platforms require Bitcoin reserves, and at least some of it has now been depleted.
Since the beginning of the year, OTC addresses that belong to miners have reduced their Bitcoin balance by 19 percent, with only 134000 BTC remaining.
This one is hard to measure but it contributes to the general sense of scarcity we have now, and that means that even small increases in demand will have a greater impact on price.
Signs That Prices Will Rise More
There seems to be an interesting pattern in early June from Bitcoin’s price movement. And after hitting rock bottom in recent negative financing rates (which typically signal a market that is weak) Bitcoin rose from $104,000 to $110,000 between June 6 and June 8.
Such a rare combination of negative rates and rising prices has happened only three times before in this market cycle, and it led to powerful upward thrusts each time. But if short sellers are forced to cover, there could be a collapse, driving up prices.
It is not too much for many analysts to predict Bitcoin would soon exceed its all-time high of 111,814 USD. And with supply at historically low levels and demand strengthened, that means the risk of a sudden rally is growing.
