News View Non-AMP

$120k Bitcoin Soon? Exchange Reserves Dry Up Amid Increased Demand

Published by
Mustafa Mulla

Bitcoin’s recent surge to its ATH $108k has caught the attention of investors, especially after U.S. President-elect Donald Trump suggested the creation of a national Bitcoin reserve. A major factor driving this surge is the historic drop in exchange reserves, which are now at a record low of 2.4 million BTC. With high demand and limited supply, Bitcoin could soon reach $120K.

Bitcoin Exchange Reserve Hit Record Low

According to Kripto Baykus, a CryptoQuant analyst, Bitcoin’s exchange reserves have been steadily falling throughout 2024, dropping from 3 million in January to a record low of 2.4 million by the end of the year. 

This decline signals a change in how investors are approaching Bitcoin, especially among institutional investors. Many of these investors are adopting the “hodl” strategy, removing their Bitcoin from exchanges in favor of long-term holding. 

Baykus notes that this is a sign of confidence in Bitcoin’s future, with institutional players betting on the cryptocurrency’s potential.

Potential Risks Ahead

While the supply-side trends are bullish, there are some concerns about Bitcoin’s demand. Yonsei Dent, another CryptoQuant analyst, pointed out a divergence in the Coinbase Premium Index, a metric used to track demand in North America.

Despite Bitcoin’s price surge, Coinpedia news reported that the Coinbase Premium Index has dropped. This suggests that the recent price surge may not be entirely driven by U.S. demand, raising concerns about the sustainability of Bitcoin’s rally in the medium term.

Could $120K Be Next?

As these reserves shrink and Bitcoin becomes scarcer, its price has been rising. At the start of 2024, Bitcoin was valued at around $40,000. By November, it had soared past $100,000, even hitting a new high above $108,000. 

With Bitcoin’s supply tightening and demand staying strong, experts believe that Bitcoin could continue to set new price records through the rest of 2024 and into 2025. If the current trends continue, Bitcoin could reach new highs, possibly even hitting $120,000. 

FAQs

What is the Bitcoin exchange reserve?

Bitcoin exchange reserves refer to the total BTC held on trading platforms, now at 2.4 million due to growing hodling by institutional investors.

What is the available supply of Bitcoin?

The total Bitcoin supply is capped at 21 million coins, with over 19.5 million already mined and in circulation as of 2024.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Time to buy XRP? $55 million of Asset Outflow from Exchanges

XRP, the native token of Ripple Labs, is gaining massive attention from long-term holders despite…

April 4, 2025

Crypto Market Hit New Lows—Investors Looking Elsewhere? Ozak AI’s $0.003 Entry Looks More Promising!

The crypto market has recently experienced a vast downturn, with most important projects such as…

April 4, 2025

BTC Price Volatility Spikes Up—Is it a Good Time to Buy Bitcoin?

The US markets are experiencing one of the massive pullbacks, with major stocks plunging by…

April 3, 2025

Forget PEPE – Influencer Pepe (INPEPE) is the Future of Meme Coins with Real Utility!

PEPE hopped its way to a $3.8 billion market cap, but its reign as a…

April 3, 2025

Ripple (XRP) Eyes $10 as Ruvi AI (RUVI) Captures Investor Attention with Huge Growth Potential During Presale Phase 1

Ripple’s (XRP) recent rally from $2.00 to $2.20 has sparked excitement among cryptocurrency enthusiasts. This…

April 3, 2025

How High Can Influencer Pepe Go? Expert Predictions for 2025-2030!

The crypto circus has a new ringmaster: Influencer Pepe (INPEPE). This Pepe-the-Frog-inspired token is making…

April 3, 2025