Bitcoin has not shown very impressive results and has failed to regain the $100,000 mark. Nonetheless, the declining Bitcoin Exchange supply indicates resilience among holders.
However, if one pays attention to what goes on behind the scenes of the market one is presented with the picture of confidence and accumulation.
In the last two days alone, supply on exchanges decreased by 11,000k BTC which indicated that there is less selling and buy back sentiments among traders.
Bitcoin’s Declining Exchange Supply
Glassnode data shows a huge drop in Bitcoin’s exchange supply, a trend that indicates long-term holders are moving their assets to cold storage.
This reduction in supply aligns with a broader accumulation trend. Since the start of 2024, investors have added $1 billion worth of BTC to their holdings, despite stagnant price movements.
This behavior demonstrates resilience among Bitcoin holders, emphasizing their belief in a future price recovery. Reduced selling pressure from exchanges often correlates with bullish market sentiment, setting the stage for potential upward momentum.
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Institutional investors have been making waves, with net inflows into spot Bitcoin ETFs reaching $4.63 billion in December. This figure is a substantial increase from the monthly average of $2.77 billion for 2024.
Interestingly, most of these inflows occurred in early December, during a period of heightened market enthusiasm. However, even as bearish conditions took hold in the latter half of the month, institutional interest remained robust.
This steady inflow underscores the confidence institutions have in Bitcoin’s long-term value proposition, providing a strong foundation for price recovery.
BTC Price Analysis: The $100,000 Battle
Currently, Bitcoin is trading at $96936 and is sustaining at $95668. However, in order to regain the $100,000 level and maintain it as a support level, BTC needs to hold above key levels. Flipping from $100,000 could help open the way for a rally towards $105, 000.
On the other hand, trading below $95,668 may bring a bearish trend that will make Bitcoin decrease to $93,625. A breakdown of the $89,800 level will negate the bullish thesis and possibly lead to a bearish breakdown.
Despite the recent price struggles, the market sentiment surrounding Bitcoin remains positive. The confluence of reduced exchange supply, strong institutional inflows, and consistent accumulation by retail investors highlights a market poised for growth.
Bitcoin turning 16 this year adds a symbolic milestone to the narrative. Its longevity and increasing institutional adoption underscore its position as a leading digital asset.
While the battle for $100,000 continues, the underlying data suggests a market with strong foundations and the potential for a rally in the near term.
Bitcoin Price Prediction
Adding to the narrative, the financial educator and the author of the ‘Rich Dad’ series, Robert Kiyosaki, recently adjusted the Bitcoin 2025 price prediction down by 30%. At first, Kiyosaki expected the cryptocurrency to reach the $500,000 mark by 2025, but he revised his forecast to $175,000 – $350,000 on New Year’s eve.
The projections of Kiyosaki focus on the application of Bitcoin as insurance against fiat money volatility, economic risk, and geopolitical risk. Although the BTC price rose above his $100,000 projection—albeit with a delay of half a year—it is still 63.5 percent less than his $350,000 indicator.
At the time of writing this text, Bitcoin has reached $96,736, which, overall, is only 0.04% higher over the last 24 hours. Nevertheless, the asset is still 11.2% lower compared to the apex of its value at $108,268 registered on December 17, 2024.
