Bitcoin demand rises again
Bitcoin hit a record high this week before falling 13% a few days later. On Friday, December 20, the price of BTC fell below $92,000.
Bitcoin fell sharply when the US Federal Reserve cut interest rates, which also affected other global markets. However, the leading cryptocurrency is recovering, hovering around $97,000.
Can demand push BTC above $100,000?
Market analysis platform CryptoQuant reported an interesting development in Bitcoin supply and demand on the chain on December 20. The blockchain company is reporting renewed investor interest in BTC.
The total OTC desk balance shows the amount of Bitcoin held at OTC desk addresses. This indicator indicates how much BTC large and institutional investors can obtain.
CryptoQuant reports that OTC desk inventory fell by about 26,000 BTC in December, the largest monthly decline in 2024. Since November 20, the balance has fallen by 40,000 BTC.
A decrease in the total OTC desk balance indicates a positive sign of increasing demand for Bitcoin and decreasing supply. A decrease in the open market supply of BTC could lead to significant price gains.
Bitcoin surged from $40,000 to $74,000 in Q1 2024, according to CryptoQuant, after increased demand led to a reduction in OTC desk inventories. Market intelligence suggests that OTC desk inventories are approaching the highs of Q1.
Since entering the growth zone in late September, CryptoQuant data shows that apparent demand for Bitcoin has been expanding at a rate of 228,000 BTC each month. The pool address balance is growing at a record rate of 495,000 BTC each month.
