CryptoQuant Research Director Julio Moreno stated that Bitcoin rose to $106,000 levels thanks to the increase in demand.
Moreno particularly noted the massive drop in Bitcoin balances on OTC (over-the-counter) platforms.
Record decline on OTC platforms
According to Moreno, Bitcoin OTC platforms are experiencing their biggest monthly decline this year. The platforms’ Bitcoin balances have decreased by 25,000 BTC. This indicates increasing demand from institutional investors and large buyers.
In addition, the total Bitcoin balance on OTC platforms has decreased by 40,000 BTC since November 20. Moreno stated that these data reflect the deterioration in Bitcoin’s supply-demand balance and increasing institutional interest.
Can Bitcoin continue to rise?
The fact that demand exceeds supply indicates that the Bitcoin price is in a strong upward trend. The balance decreases, especially seen on OTC platforms, indicate that large investors continue to accumulate Bitcoin. Such moves are generally considered to be the harbingers of new price peaks in the market.
Stay tuned.