Bitcoin’s $100K hold explained: It’s not retail, it’s a liquidity shortage
Main Idea
Bitcoin's sustained rally above $100k is driven by a liquidity shortage due to declining exchange reserves, whale accumulation, and institutional demand from Spot ETFs, rather than retail investor activity.
Key Points
1. Bitcoin's liquidity on exchanges has significantly declined over the past 18 months, contributing to its sustained rally above $100k for 89 days.
2. Whales are in accumulation mode, with negative exchange balances (-73k BTC for whales, -19k BTC for mega whales), indicating reluctance to sell despite record profits.
3. Institutional demand from Spot ETFs, holding over 1.3 million BTC worth $149 billion, has compounded the liquidity shortage and pushed Bitcoin to new highs.
4. The Stock-to-Flow model projects a theoretical BTC price of $3.2 million, highlighting the impact of supply constraints on price growth.
5. AMBCrypto's analysis suggests BTC could reclaim the $117k resistance level and target a new all-time high if current demand trends continue.
Description
Liquidity on Exchanges has declined significantly over the past 18 months, propelling BTC's growth.
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