Demand for Bitcoin is Rising Again: What's Happening?

This week is one of the separate halves of the Bitcoin price, with the leading cryptocurrency reaching an all-time high and then dropping about 13% after a few days. On Friday, December 20th, the price of BTC dropped to a low of $92,000. This sudden drop in Bitcoin's price comes after the US Federal Reserve cuts interest rates, which also pushes other financial markets into the red. However, it is worth noting that this leading cryptocurrency is beginning to show signs of recovery, currently fluctuating around $97,000. Can the high demand push the price of BTC back above $100,000? In a recent report on December 20, the CryptoQuant market analysis platform revealed an interesting on-chain development with the supply-demand dynamics of Bitcoin. According to the blockchain company, the BTC market seems to be attracting renewed investor interest. The relevant index here is the Total OTC Desk Balance, tracking the amount of Bitcoin held in addresses related to OTC transactions. This index provides detailed information on the BTC supply source easily accessible to large investors and organizations. According to data from CryptoQuant, OTC exchanges are seeing the largest monthly inventory drop of 2024, with over 26,000 BTC reduced so far in December. This decline has even been more significant in the past 30 days, with a balance reduction of 40,000 BTC since November 20th.

This decline in the Total OTC Desk Balance is a price increase signal, reflecting high demand for Bitcoin and decreasing supply. Typically, the narrowing BTC supply in the open market may set the stage for a significant price increase. CryptoQuant notes that the price of Bitcoin has increased from $40,000 to about $74,000 in the first quarter of 2024 as increased demand has led to a decrease in inventory at OTC trading desks. According to market intelligence, the inventory at OTC trading desks is starting to approach levels seen in the previous price surge in the first quarter. Data from CryptoQuant shows a clear demand for Bitcoin is currently increasing at a monthly rate of 228,000 BTC after reaching a peak in late September. At the same time, the accumulated address balance is increasing at a record high rate of 495,000 BTC per month. Bitcoin Price Overview As of the time of writing this article, the price of Bitcoin is around $97,655, reflecting a 0.1% decrease in the past 24 hours. According to data from CoinGecko, this leading cryptocurrency has dropped nearly 4% in the weekly timeframe.

BTC0.05%
G-1.62%
X-1.12%
HAI1.16%
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GateUser-9a825f31vip
· 2024-12-25 23:58
WAGMI 💪
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GateUser-a9169f0cvip
· 2024-12-21 15:40
Ambush 100x coin 📈
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