Bitcoin rally far from over: BTC on its way to $100,000?

After reaching a new all-time high of almost $94,000 last Wednesday, Bitcoin (BTC) staged a small correction at the end of the business week and briefly fell below $87,000.

However, the bottom seems to have passed, as the price recovered to above $90,000. In fact, several on-chain indicators suggest that this rally is far from over and that Bitcoin could challenge the coveted $100,000 level.

BTC reserves on exchanges continue to decline

One of the most important signals for the immediate selling pressure of a cryptocurrency is the number of coins available on exchanges. The less Bitcoin is available there, the lower the selling pressure.

CryptoQuant’s recent data shows that BTC reserves on exchanges continue to decline, especially since Donald Trump won the 2024 US presidential election. Reserves have now fallen below 2.6 million BTC, the lowest level in six years.

This drop suggests that investors are moving their BTC from exchanges to cold wallets, a sign of confidence in the long term. “The move of BTC to cold wallets reduces the available supply on exchanges, increasing buying pressure in a limited market,” according to an analysis by CryptoQuant. This could pave the way for further price increases, especially if demand for Bitcoin continues to increase.

Growing dominance of long-term holders

The decline in BTC reserves on exchanges also underlines Bitcoin’s increasing role as a store of value in times of economic uncertainty and high inflation. This trend could lead to a less volatile, but stronger market, with greater dominance of long-term holders. This increases the chance of new price peaks.

Stablecoins support market liquidity

The crypto market has recently received a significant liquidity boost, thanks in part to the increasing inflow of stablecoins such as USDT. According to CryptoQuant, more than $3 billion in USDT has flowed into exchanges since Trump’s election, the highest level in three years. Stablecoins make it easier for investors to move capital into Bitcoin and altcoins, often coinciding with BTC rallies.

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