TLDR
- Bitcoin’s price is trading at nearly $104,000 and is close to reaching its all-time high of $109,300.
- Supply to centralized exchanges has dropped to 2.17 million BTC, the lowest level in over six years.
- Over-the-counter desks now hold only 120,000 BTC, which has significantly declined from late 2021.
- Spot Bitcoin ETFs have accumulated over $40 billion in assets since January last year, supporting strong demand.
- Corporations like Strategy now hold large Bitcoin reserves, encouraging more firms to follow their lead.
Bitcoin price traded steadily near $104,000 this week as market participants prepared for a potential breakout. A narrowing supply of Bitcoin across exchanges and OTC desks has created conditions that could spark a sharp upward move. With demand surging and supply shrinking, Bitcoin price now approaches its all-time high of $109,300 with strong technical backing.
Bitcoin Price Rises Amid Shrinking Exchange Supply
Bitcoin price continues to gain strength as available supply on exchanges hits the lowest level in over six years. Centralized exchanges currently hold 2.17 million BTC, down from 2.72 million in January 2024. This drop limits sell-side pressure and could support a strong upward move in Bitcoin price.
Over-the-counter desks have also seen a reduction in available Bitcoin, signaling reduced liquidity for large off-exchange transactions. OTC supply has fallen to 120,000 BTC, a steep drop from nearly 500,000 BTC in late 2021. This tightening market may help sustain momentum as Bitcoin price targets a new record.
This chart doesn’t lie.
Bitcoin OTC liquidity is drying up fast.
Sellers are gone. Supply shock is coming.
How high do you think $BTC goes in 2025? pic.twitter.com/hciqWSrg4h
— Merlijn The Trader (@MerlijnTrader) May 16, 2025
The declining supply aligns with increased market activity and larger inflows into long-term holdings. This shift in Bitcoin distribution reduces immediate selling potential and builds a solid case for further price gains. The reduced supply across all major platforms strengthens Bitcoin price resilience.
Bitcoin Price Climbs on Strong Institutional Buying
Institutional activity remains a key driver behind the current Bitcoin price movement. Since early last year, Spot Bitcoin ETFs have attracted over $40 billion in assets, boosting overall demand. These funds accumulate large amounts of Bitcoin, applying upward pressure on the market.
Corporations have also joined the trend, with companies like Strategy holding 568,500 BTC worth about $59 billion. Strategy now owns approximately 2.7% of the total Bitcoin supply, setting a strong precedent. Other firms like Next Technology and Metaplanet have followed with steady acquisitions.
As more companies observe the benefits of these holdings, broader corporate adoption may accelerate. Strategy’s market value has surged from $1 billion to $115 billion since 2020, showing the impact of Bitcoin’s exposure. These moves add consistent long-term demand supporting the ongoing Bitcoin price climb.
Chart Patterns Point to Bitcoin Surge
Bitcoin’s price is consolidating within a bullish pennant pattern, forming just under resistance near $108,420. This formation indicates continuation in a broader uptrend, supported by a strong market structure. The price also forms a cup and handle pattern, adding further bullish confirmation.
The 50-day and 100-day Exponential Moving Averages are trending upward, reinforcing short-term strength. This alignment suggests sustained momentum, with the BTC price poised to challenge its historical peak. A successful breakout could push the price beyond $110,000, a significant psychological barrier.
If Bitcoin price breaks past the $109,300 level, it could attract additional buying activity and reinforce positive sentiment. The consolidation below the resistance appears orderly, increasing the probability of a breakout. As supply dries and demand holds firm, BTC price may set a new record high soon.
