Bitcoin Price Surge: Exploring the Unprecedented Institutional Demand Driving All-Time Highs

$100K, $103K, $106K… – How is Bitcoin breaching one ATH after the other?

Bitcoin has made a remarkable comeback, with its price soaring to yet another all-time high of $106,000. As institutional investors and high-net-worth individuals continue to flock towards the cryptocurrency, this trend seems unlikely to slow down anytime soon.

A closer examination reveals that an unprecedented surge in institutional demand is driving this rally. Analysis suggests that OTC desk balances have plummeted by 25,000 BTC over the past month alone, with a staggering total loss of 40,000 BTC since November 20. This depletion can only be attributed to the relentless accumulation efforts of institutional investors and high-net-worth individuals seeking to capitalize on the market’s unrelenting bull run.

Corroborating evidence has emerged from an examination of apparent demand data, which indicates that Bitcoin is experiencing a severe supply shortage. In the past 30 days, apparent demand has consistently grown, with net absorption far outpacing any outflows. This disparity highlights a stark mismatch between demand and available supply, fueling the cryptocurrency’s incredible price performance.

As expected, Bitcoin’s price chart reflects this bull run perfectly. The cryptocurrency is currently trending upwards in an unbroken uptrend, marked by higher highs and higher lows, which underscores its robust momentum. Bitcoin remains comfortably above both its 50-day and 200-day moving averages, providing further validation for the asset’s strength.

Furthermore, trading volumes have increased during critical price increases, a testament to the unwavering support from both institutional and retail investors. The Relative Strength Index (RSI) currently rests near 70, indicative of intense momentum but also leaving room for potential short-term consolidation.

It is apparent that an institutional-driven supply squeeze is behind Bitcoin’s impressive performance. As long as institutions continue to seek exposure to the cryptocurrency, it appears unlikely that this trend will reverse anytime soon.

Source: ambcrypto.com