Bitcoin faces unprecedented supply constraints as exchange and OTC desk reserves plummet to record lows while institutional demand rapidly outpaces miners’ replenishment capacity. Market analysts indicate this structural imbalance suggests limited downside price risk despite potential short-term volatility.
The cryptocurrency recently achieved a new all-time high of $122,884, defying historical seasonal weaknesses typically observed in the third quarter. This milestone underscores resilient market confidence amid ongoing liquidity challenges typically associated with the period.
Institutional investors dominate market activity, reacting dynamically to price fluctuations while retail participation remains comparatively muted. U.S.-listed Bitcoin ETFs have drastically intensified supply pressure, absorbing substantially more Bitcoin this year than miners have produced, creating sustained upward momentum.
Miners’ limited ability to refill exchange inventories compounds the scarcity dynamics, fundamentally altering Bitcoin’s market structure beyond traditional seasonal expectations.