Bitcoin News Today: Bitcoin supply tightening as corporate buying outpaces exchange reserves

Bitcoin acquisition trends suggest a potential supply shock could significantly influence BTC prices in the near term, driven by sustained corporate treasury purchases and dwindling exchange reserves. Strategy, a major corporate buyer, has accumulated 182,391 BTC year-to-date, acquiring the asset weekly regardless of price fluctuations [1]. This consistent buying pressure from institutional investors is increasingly shifting the balance of supply and demand in the Bitcoin market [1].

The shrinking availability of Bitcoin on OTC desks has become a key factor in these dynamics. According to Bedlam Capital, OTC desk balances have declined to approximately 155,000 BTC, signaling a tightening of available supply [2]. This reduction in liquidity from OTC desks is expected to push demand toward public exchanges, potentially creating a bottleneck that could “uncork” BTC price action [2]. Analysts suggest that as these reserves dwindle, it will become increasingly difficult to meet large buy orders, which could accelerate price movements [2].

Simultaneously, exchange-held Bitcoin balances are also on a downward trajectory. Onchain analytics firm Glassnode reports that combined exchange balances have fallen to 2.919 million BTC [1]. This decline is attributed to long-term holders taking profits amid market volatility. According to Glassnode, over $1 billion in realized profits were recorded in just 24 hours, with $362 million (approximately 35.8%) of this amount coming from ancient coins held for 7–10 years [1]. This rare profit-taking event could indicate either internal transfers or genuine exits from the market.

The evolving market dynamics have shifted from euphoria to reassessment. As corporate demand continues to outpace available supply and existing holders take profits, the market remains in a state of flux. The interplay between these factors may create opportunities for price recovery, particularly if the supply imbalance persists. However, profit-taking remains a priority for many market participants, which could introduce short-term volatility [1].

Overall, the convergence of corporate treasury buying, declining OTC and exchange reserves, and profit-taking activity is reshaping the Bitcoin market. A supply shock, if it materializes, could lead to significant price increases, especially if demand from institutional buyers continues to outstrip available liquidity. Investors and stakeholders are advised to closely monitor these developments as the market navigates this critical juncture [1].

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[1] https://en.coinotag.com/potential-bitcoin-supply-shock-may-influence-future-price-movements/