Bitcoin supply shortage As Bitcoin continues to consolidate below the crucial $95,000 resistance level, many investors find it perplexing why the price has not surged, given the positive signals. Market watchers are wondering what is holding Bitcoin back as institutions, ETFS, and even sovereign wealth funds aggressively massing BTC.
Bitcoin Supply Dries Up on Exchanges
Recent observations by Swan experts on Bitcoin balances on exchanges reveal a five-year low. With more BTC being transferred into cold storage or institutional custody, such as ETFS and fund managers, this change represents a growing investor conviction. These coins are just flowing upstream, not disappearing, though.
MicroStrategy has added 15,000 more BTC to its holdings; ETFS are building at a rapid pace; sovereign wealth funds are circling. Still, for more than a week, Bitcoin’s price has stayed within a range of $93,000 to $95,000.
Bitcoin Market Stays Volatile
Not all of the BTC coming into institutional control is sitting still. Active in structured goods, yield platforms, and utilised as collateral, it delays the instantaneous price impact. Selling pressure has not vanished, either. Short-term traders are making money, long-term holders are cutting their gains, and weak conviction speculators are leaving. Bitcoin is still a market, as Swan pointed out: “Sellers never disappear.”
MicroStrategy Tightens Bitcoin Supply
Commenting on MicroStrategy’s rapid accumulation, analysts noted that BTC miners now generate approximately 13,500 BTC per month. Using cheap finance and substantial capital—a dynamic they compare to a “synthetic halving—Strategy has regularly outpaced that rate.”
This action removes not only supplies. It compresses the supply curve of Bitcoin from the outside, thereby raising the possibility of a significant breakout once demand fully recovers.
Future Prices for Bitcoin
Rekt Capital claims that Bitcoin is nearly complete with its initial price discovery adjustment and is poised for a substantial and strong rise. Although the exact timing is unknown, market signals indicate that a significant turning point is approaching.
Reporting that Bitcoin supply shortage is “testing key resistance at $93K–$95K, breaking its downtrend and forming a higher high,” Glassnode strengthened this point of view. Technical signs and on-chain data indicate a market ready for a significant shift. Bitcoin swiftly recovered from a slight dip to $93,400 in the Asian session on Thursday, reaching $94,800. BTC has recovered impressively from its low near $75,000 over the past month, adding more than 12%. Ultimately, a violent and irreversibly moving action could be imminent.
Swan put it most succinctly: “Supply is drying off. Price changes, nevertheless, occur when demand upsets the equilibrium. And with endless fiat chasing a scarce asset, Bitcoin’s following action won’t be linear; it will be violent and most likely permanent.
