Bitcoin's Supply Dries Up, Will Institutional Funds Propel It Past the Dream of $90,000?

▲ Bitcoin (BTC) ©Park Chae-won

As Bitcoin (BTC) embarks on an unstoppable upward rally around $78,500, nearing the recapture of the $80,000 mark, a perfect bullish scenario is unfolding, driven by miners locking up their holdings and a sharp decline in exchange supply.

According to the investment media outlet TradingNews on April 23 (local time), Bitcoin surged 14.46% compared to last month, touching an 11-week high of $78,900, and is currently taking a breather around the $78,500 level. The biggest drivers of this uptrend are the easing of macroeconomic risks due to the extension of the ceasefire between the US and Iran, and the entry of major Wall Street institutions like Morgan Stanley and Goldman Sachs into virtual asset services. As evidence, an astronomical $1.9 billion has flowed into Bitcoin spot Exchange Traded Funds (ETFs) for seven consecutive days, fueling the rally.

The most striking difference compared to past bull markets is the clear shift in attitude among those driving supply. While miners aggressively offloaded their holdings every time prices rose during the 2025 bull run, the current Miner Position Index (MPI) has fallen below zero, indicating that miners are opting for strong accumulation (holding) instead of profit-taking. Additionally, long-term investors holding coins for over 155 days have accumulated a staggering 130,000 additional units in the last 30 days, causing the market's circulating supply to rapidly dry up.

The actual sellable supply on exchanges is also hitting rock bottom. The amount of Bitcoin held on Binance has plummeted by 8.4% from 675,000 in January to 618,300 currently, marking a multi-year low. The derivatives market also shows aggressive buyers absorbing all available sell-side liquidity, with cumulative taker volume surpassing $9.2 billion, the highest since February.

However, even within this seemingly perfect upward structure, warning signs are detected. Major altcoins such as Ethereum (ETH), XRP (Ripple), and Solana (SOL) are failing to join the leader's ascent and are still hovering near cycle lows. A strong concomitant rise of major altcoins is essential for a transition to a true mainstream bull market, and the current phenomenon of Bitcoin's solo run prevents us from letting our guard down, suggesting this rally could be the last gasp of a corrective wave.

Experts predict that if Bitcoin strongly breaks the $80,000 resistance level and achieves a weekly close above it, it will embark on an unstoppable rally, passing through $83,850 and ultimately reaching $89,434. The outlet recommended the $74,000 to $76,000 range as an attractive staggered buying opportunity, but strongly advised immediately withdrawing from a buying stance and adopting a conservative approach if the $74,000 support level breaks.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*