According to Bitfinex, the supply of new BTC is being greatly outstripped by buyer demand. This contraction is causing a considerable upward surge in its price and heralds new highs. Let’s take stock of what could be a fundamental trend.
The bull run is being driven by very strong demand from both institutional and retail investors
The bull run is in full swing, according to a report published today by Bitfinex. Bitcoin is experiencing a considerable upward surge due to the imbalance between supply and demand.
Bitcoin has reached a new all-time high, climbing to $123,120, marking a spectacular 12.2% rise above January’s peak and a 65% rebound from April’s lows.
While it was already known that institutional investors were demanding BTC faster than miners could supply it, this is now also the case for retail investors.
However, according to Bitfinex, they are also contributing to the explosion in the price of Bitcoin, which reached a new record high yesterday. Wallets containing less than 100 BTC ($11.6 million at current prices) are accumulating steadily, outpacing new supply creation.
Another effect of the contraction is that demand now absorbs a significant portion of the supply available on the markets. This means that the liquidity of exchange platforms is partially dried up, which has an even greater impact on demand and therefore on the price.
ETFs continue to generate considerable sums
On the institutional buyer side, the rush shows no sign of abating. US spot BTC ETFs recorded more than $2.7 billion in inflows last week. BlackRock’s IBIT reached $80 billion in assets under management, a record high for an ETF. As for retail investors, the Bitfinex report emphasizes that these are “real” buyers, not speculators. In other words, people who are more inclined to hold on to their assets.
The consequence of all this, according to Bitfinex, is that this is not an opportunistic move or FOMO, but rather a fundamental “repricing” of Bitcoin based on a new supply/demand paradigm.
Bitcoin’s role as a native digital monetary asset, validated by institutional allocators […] supports its rise in the global asset hierarchy. The price movement reflects much more than just momentum: it represents a fundamental reassessment of Bitcoin’s role in institutional portfolios and macroeconomic frameworks.
Bitfinex is therefore resolutely bullish on the immediate future of BTC, which continues to prove that it is the hottest digital asset of the moment.
