This week marks one of two distinct halves of Bitcoin's price, with the leading cryptocurrency reaching a new all-time high and then dropping about 13% shortly after. On Friday, December 20, the price of BTC fell to a low of $92,000.

This sudden drop in Bitcoin's price comes after the Federal Reserve cut interest rates, which also pushed other financial markets into the red. However, it is noteworthy that this leading cryptocurrency is beginning to show signs of recovery, currently hovering around the $97,000 mark.

Could high demand push BTC prices back above $100,000?

In a recent report on December 20, the market analysis platform CryptoQuant revealed an interesting on-chain development regarding Bitcoin's supply-demand dynamics. According to the blockchain company, the BTC market seems to be attracting the attention of investors again.

The relevant index here is the Total OTC Desk Balance, which tracks the amount of Bitcoin held in addresses related to OTC trading desks. This index provides insights into the readily available BTC supply for large investors and institutions.

According to data from CryptoQuant, OTC exchanges are witnessing the largest monthly inventory decline of 2024, down more than 26,000 BTC so far in December. This decline is even more significant over the past 30 days, with balances down 40,000 BTC since November 20.

This decline in the Total OTC Desk Balance is a bullish indicator, reflecting high demand for Bitcoin and a simultaneous decrease in supply. Typically, a shrinking BTC supply in the open market can set the stage for a significant bull phase.

CryptoQuant notes that the price of Bitcoin has risen from $40,000 to around $74,000 in the first quarter of 2024 after increased demand caused OTC trading desks' inventory to decline. According to market intelligence, the inventory of OTC trading desks is beginning to approach levels seen during the price surge of the first quarter.

Data from CryptoQuant shows that the clear demand for Bitcoin is currently increasing at a monthly rate of 228,000 BTC after reaching the expansion zone at the end of September. At the same time, the balance of accumulation addresses is rising at a record pace of 495,000 BTC per month.

Bitcoin Price Overview

As of the time of writing, the price of Bitcoin is around $97,655, reflecting a decrease of 0.1% in the past 24 hours. According to data from CoinGecko, this leading cryptocurrency has fallen nearly 4% in the weekly timeframe.