Big Bitcoin Price Move Likely as Liquidity and Supply Shrink
Bitcoin (BTC) price is rising despite low trading volumes and subdued retail investor activity. Onchain data indicates a stealth accumulation phase, with BTC held on exchanges declining by 14% since early 2025, down to 2.5 million BTC. This trend suggests increased investor confidence and long-term holding behavior, as coins are moved into cold storage, reducing liquid supply. Over-the-counter (OTC) Bitcoin balances have also plummeted, with reserves at historic lows, indicating tightening supply. Negative funding rates in perpetual futures contracts reflect short dominance but coincide with rising BTC prices, suggesting strong underlying demand. This pattern has previously led to significant price surges, indicating potential for further upward movement. The market's quietness may mask a growing mismatch between leverage and real demand, setting the stage for explosive price increases.
