Bitcoin News Today: Bitcoin OTC Reserves Drop 75.5% Fueling Supply Shock Fears

Bitcoin’s dwindling reserves on over-the-counter (OTC) desks are triggering growing concern among traders and analysts, with several reports indicating a potential supply shock that could drive the cryptocurrency’s price upward. OTC desks—key liquidity hubs for large institutional trades—have seen their Bitcoin holdings shrink dramatically. For instance, the BTC held by these desks has fallen from approximately 550,000 in September 2021 to just 145,000 today, a decline that highlights the increasing tension in the market [1]. This reduction is attributed to heightened demand from institutional and high-net-worth investors, who increasingly use OTC desks for executing large trades.

The supply imbalance is becoming more pronounced as institutional buyers continue to accumulate. Strategy, a major buyer, has added over 182,000 BTC this year alone. Meanwhile, OTC desk balances have dropped to around 155,000 BTC, creating a situation where institutional demand now outpaces available supply [2]. According to Bedlam Capital Pres, this scarcity will likely force institutional buyers to turn to public exchanges, which could amplify price pressure. "As OTC desks dry up, demand will shift to public exchanges, and that is what will uncork the price of the flagship crypto," the trader stated.

The situation is exacerbated by a broader decline in Bitcoin's exchange-held reserves. Glassnode reports that combined BTC reserves on exchanges have fallen to 2.919 million, signaling a shrinking supply of BTC available for sale [3]. This trend, combined with persistent institutional buying, increases the likelihood of a supply-demand imbalance, a condition historically favorable to price surges.

Complicating this dynamic is a recent wave of mass profit-taking by long-term holders. Over the past 24 hours, Bitcoin holders realized over $1 billion in profit, with $362 million attributed to coins held for 7 to 10 years and $93 million to holdings between 1 and 2 years. This activity suggests a shift in investor behavior, with liquidity being drawn from historically stable holders, potentially reducing the buffer against price volatility [4]. The dual pressures of a tightening supply and short-term profit-taking create a complex environment where the market is caught between bullish and bearish forces.

Analysts remain cautious, noting that while a supply shock could drive prices upward, investor psychology remains mixed. Some buyers are hesitant to enter a market perceived as overvalued, while others are preparing for a potential breakout. “A supply shock could soon make Bitcoin’s price skyrocket,” one industry report warns [5]. The market's next move may depend on whether institutional demand can overcome the current wave of profit-taking and whether OTC desks can replenish their inventories before a critical point is reached.

Sources:

[1] title: QuickTake: Bitcoin’s OTC Desk Reserves Continue to Shrink

url: https://cryptoquant.com/insights/quicktake

[2] title: Bitcoin Demand Surges as OTC Desk Supplies Dry Up

url: https://www.binance.com/en/square/post/08-06-2025-bitcoin-demand-surge-expected-to-drive-price-growth-amid-supply-imbalance-27953169579970

[3] title: Bitcoin Traders Bet on Sub-100K Slide

url: https://coinstats.app/news/6ac8dae7ea342ec79b4282b76d742e56af692aea99f99ed3349a23f5add69fbc_Bitcoin-Traders-Bet-on-Sub100K-Slide-Crypto-Daybook-Americas

[4] title: Bitcoin’s OTC Desk Shortage Sparks Price Concerns

url: https://coinmarketcap.com/community/articles/68944b5c4efbf54e608dc8be/

[5] title: Bitcoin Shortage on OTC Desks Raises Alarm

url: https://www.cointribune.com/en/bitcoin-shortage-on-otc-desks-raises-alarm/