Cryptoquant Analyst: 146 Thousand Bitcoin Left, Price Could Explode if Depleted! - Coin Bulletin

According to analysts, as Bitcoin (BTC) scarcity begins to emerge in markets where large players are making purchases, there could be an explosion in price.

According to Cryptoquant, while the demand for Bitcoin continues to rise, the BTC reserves in the OTC (over-the-counter) markets used by major investors are rapidly decreasing, which could have a significant impact on the price.

Major institutional investors, hedge funds, and governments traditionally use OTC platforms to make Bitcoin purchases without directly impacting the market. However, recent data shows a significant decrease in Bitcoin supply in this market. The OTC wallet balance, which was at 480,000 BTC in September 2021, has now dropped to only 146,000 BTC. This decline continues despite Bitcoin reaching $100,000, indicating the strength of the demand.

According to the CryptoQuant analyst, when the OTC reserves are completely depleted, large purchases will now be made directly through exchanges. This could put pressure on the exchange liquidity and may cause sharp movements in the Bitcoin price.

Currently, there are approximately 1 million BTC in US-based exchanges, but it remains uncertain how much of this supply will meet the demands of large investors.

On the other hand, Bitcoin miners sometimes sell through OTC markets. However, the current miner balance is only around 117,000 BTC, and not all miners use this method. Therefore, as OTC reserves continue to decline, the effects on the price may become even more pronounced.

Bitcoin, according to CoinGecko data, finds buyers for itself at $96,965 during the writing of the news.