Bitcoin Surges to Record $125K High Amid Supply Squeeze
Investor demand drives prices to new all-time highs as Bitcoin balances on exchanges plummet to a six-year low.
Bitcoin (BTC) surged to a new all-time high on Wednesday, breaking the psychological $125,000 barrier amid a flurry of bullish sentiment and strong investor demand. The rally is underpinned by a significant supply squeeze, with the amount of Bitcoin held on cryptocurrency exchanges dropping to its lowest level in six years.
The dwindling supply on exchanges, a metric closely watched by analysts, suggests a strong holding sentiment among investors, who are moving their assets into long-term storage. This trend, often seen as a bullish indicator, reduces the immediately available supply for sale, creating upward pressure on prices as demand continues to grow. confirms that the number of BTC on exchanges has fallen below 2.9 million for the first time since 2018.
Market analysts have pointed to this supply shock as a primary catalyst for the recent price action. "The reduction in exchange balances signals a strong conviction from holders who are not looking for a quick sale," noted one market strategist. This long-term conviction is further evidenced by the increasing inflows into spot Bitcoin ETFs, which have provided a new avenue for institutional and retail investors to gain exposure to the digital asset.
The move to a has erased the losses from the previous bear market cycle and has put Bitcoin in a strong position for further gains. While some analysts caution that the market may be over-leveraged, the prevailing sentiment is that the combination of high demand and low supply will continue to drive prices higher in the near to medium term. a potential upside toward $165,000, signaling growing confidence from Wall Street.