Bitcoin Exchange Supply Drops 11,000 BTC as Bulls Target $105,000

Bitcoin did not show very impressive results and failed to regain the $100,000 mark. Even so, Bitcoin Exchange’s dwindling supply points to resilience among holders.

However, if one pays attention to what is happening behind the scenes of the market, one gets a picture of trust and accumulation.

In the last two days alone, supply on exchanges has decreased by 11,000 thousand BTC indicating that there is less selling and buying sentiment among traders.

Declining Bitcoin Exchange Supply

Data from Glassnode shows a large drop in Bitcoin’s exchange supply, a trend that indicates long-term holders are moving their assets into cold storage.

This reduction in supply is aligned with the broader trend of accumulation. Since the beginning of 2024, investors have added $1 billion worth of BTC to their holdings, despite stagnant price movements.

This behavior shows resilience among Bitcoin holders, underscoring their faith in future price recovery. Reduced selling pressure from the stock market often correlates with positive market sentiment, setting the stage for potential upside momentum.

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Institutional investors are making waves, with net inflows into spot Bitcoin ETFs reaching $4.63 billion in December. This figure is a significant increase from the monthly average of $2.77 billion for 2024.

It is interesting that most of these inflows took place at the beginning of December, in a period of heightened market enthusiasm. However, although bearish conditions prevailed in the second half of the month, institutional interest remained strong.

This steady inflow underscores the confidence that institutions have in Bitcoin’s long-term value proposition, providing a strong basis for price recovery.

BTC Price Analysis: The Battle of $100,000

Currently, Bitcoin is trading at $96936 and is holding at $95668. However, in order to regain the $100,000 level and maintain it as a support level, BTC must hold above key levels. A move from $100,000 could help pave the way for a move toward $105,000.

On the other hand, trading below $95,668 may bring a bearish trend that will see Bitcoin fall to $93,625. A breakdown of the $89,800 level will nullify the bullish thesis and likely lead to a bearish breakout.

Despite recent price struggles, market sentiment around Bitcoin remains positive. The combination of reduced exchange supply, strong institutional inflows and consistent accumulation by retail investors highlights a market poised for growth.

Bitcoin turning 16 this year adds a symbolic milestone to the story. Its longevity and increasing institutional acceptance underline its position as a leading digital asset.

While the battle for $100,000 continues, the fundamentals suggest a market with strong fundamentals and potential for near-term recovery.

Bitcoin price prediction

Adding to the narrative, financial educator and author of the ‘Rich Dad’ series, Robert Kiyosaki, recently cut his 2025 Bitcoin price prediction by 30%. At first, Kiyosaki expected the cryptocurrency to reach the $500,000 mark by 2025, but he revised his forecast to $175,000 – $350,000 ahead of the New Year.

Kiyosaki’s projections focus on Bitcoin’s application as a hedge against fiat currency volatility, economic risk, and geopolitical risk. Although the price of BTC has risen above his $100,000 projection – albeit with a delay of half a year – it is still 63.5 percent short of his $350,000 indicator.

At the time of writing, Bitcoin has reached $96,736, which is, overall, up just 0.04% over the past 24 hours. Despite this, the asset is still down 11.2% compared to its peak value of $108,268 registered on December 17, 2024.