đš BITCOIN $BTC EXCHANGE RESERVES AT RECORD LOW: Could $120K Be Next? đš
Bitcoinâs meteoric rise continues as its price hits an all-time high of $108,000, fueled by a historic drop in exchange reserves. With reserves now at a record low of 2.4 million BTC, market analysts are pointing to strong demand and tightening supply as the key drivers of a potential surge to $120,000.
đ Bitcoin Exchange Reserves Plunge to Historic Low
Data from CryptoQuant reveals that Bitcoinâs exchange reserves have steadily declined throughout 2024, falling from 3 million BTC in January to just 2.4 million BTC by year-end. This marks the lowest level in Bitcoin's history, reflecting a significant shift in investor behavior.
Institutional investors, in particular, are adopting a âhodlâ strategy, moving Bitcoin off exchanges into private wallets for long-term holding. This trend is a strong vote of confidence in Bitcoin's future, according to CryptoQuant analyst Kripto Baykus.
âThis record low in exchange reserves signals confidence among institutional players, betting big on Bitcoinâs potential.â
đš Potential Risks: Is Demand Slowing?
Despite the bullish supply-side narrative, warning signs are emerging on the demand front. The Coinbase Premium Indexâa key metric for gauging North American demandâhas shown a concerning divergence.
While Bitcoinâs price surged past $100,000, the index has dropped, indicating weaker demand from U.S. investors. Yonsei Dent, another CryptoQuant analyst, highlights that this could cast doubt on the sustainability of Bitcoinâs rally in the medium term.
đ Could Bitcoin Hit $120K Soon?
Bitcoinâs price trajectory has been remarkable, starting 2024 at $40,000 and soaring past $108,000 by November. Analysts are optimistic that the shrinking supply and consistent demand will continue to push prices higher.
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