Bitcoin News Today: Bitcoin's $100K Resilience Driven by Liquidity Shortage and Whale Accumulation

Bitcoin has remained above $100,000 for 89 consecutive days, a period marked by sustained growth and periodic corrections [1]. Analysts argue that the primary driver behind this resilience is not retail speculation but a deepening liquidity shortage in the spot market. Data indicates that Bitcoin’s exchange netflows have been predominantly negative since late February 2024, with only two days recording net inflows [1]. This outflow from exchanges suggests that large investors are hoarding Bitcoin rather than selling, creating a scarcity that supports the price.

The shrinking supply of Bitcoin on exchanges is evident in the declining available liquidity, which has created a supply shortage and, consequently, upward price pressure [1]. According to data from Bitbo, Bitcoin’s Stock-to-Flow (S2F) ratio has surged to 369.4K BTC, reinforcing the narrative of scarcity. The S2F model projects a theoretical price of $3.2 million, driven by tightening supply against relatively stable or increasing demand [1].

Whales—large holders of Bitcoin—have played a significant role in this dynamic. According to Checkonchain, whale activity shows strong accumulation behavior, with Whale to Exchange Balance Change remaining negative for the past three months [1]. At press time, Whale’s exchange balance stood at -73k BTC, and Mega Whale’s at -19k BTC. A sustained negative balance indicates that whales are locking in gains and avoiding selling, even amid record profits [1].

Institutional demand for Bitcoin has also contributed to the liquidity crunch, particularly with the approval of Bitcoin Spot ETFs in early 2024. These products have attracted over 1.3 million BTC into ETFs, representing a value of more than $149 billion [1]. This accumulation by institutions has further tightened liquidity and provided indirect upward support to Bitcoin’s price, especially as retail demand has remained minimal [1].

AMBCrypto’s analysis suggests that the combination of whale and institutional demand has driven Bitcoin’s sustained growth and scarcity, both of which are critical for maintaining upward momentum [1]. If demand from major players continues, Bitcoin is expected to recover from recent corrections and push higher. A key resistance level at $117,000—where Bitcoin has faced multiple rejections—could be the next target for a new all-time high [1]. However, if large entities shift to a bearish outlook and start selling, the correction could deepen, and Bitcoin could seek support around $110,572 [1].

Source: [1] Bitcoin’s $100K hold explained: It’s not retail, it’s a liquidity shortage (https://ambcrypto.com/bitcoins-100k-hold-explained-its-not-retail-its-a-liquidity-shortage/)