Bitcoin Sees $1.68B in Weekly Purchases – Is BTC Supply Running Low?

Recent institutional purchases of Bitcoin have tightened its available supply. Major players, including BlackRock clients, have invested heavily in BTC, leading to significant transfers from exchanges and an accumulation of spot Bitcoin ETFs. Despite the heightened demand, Bitcoin's price has stabilized above critical support levels, suggesting a focus on long-term positioning rather than short-term selling.

Key Takeaways

Institutional buying increases: BlackRock clients invested $319.7 million in BTC, while spot Bitcoin ETFs accumulated $1.68 billion worth of BTC within a week.
Price stability: Bitcoin is trading above its accumulation range, indicating strong demand and a gradual upward trajectory.
Profitability remains healthy: The MVRV ratio indicates holders are in profit without extreme gains, allowing for stability.
Controlled leverage: Funding rates have turned positive, reflecting long-term confidence while avoiding excessive risk.
Balanced trader positioning: Top traders show a bullish bias without overcrowding long positions, promoting structural stability.

Bitcoin institutional demand tightens supply

Bitcoin Accumulation Tightens Supply

Institutional buying is increasingly constraining the available supply of Bitcoin. Recently, BlackRock clients purchased $319.7 million worth of BTC. Additionally, 635 BTC, valued at around $60.53 million, transitioned from Coinbase to an unknown wallet, which has lowered liquidity on exchanges.

Furthermore, during just one week, spot Bitcoin ETFs accumulated about 17,700 BTC, translating to approximately $1.68 billion. This significant demand has absorbed a substantial part of the circulating supply. Nevertheless, the price of Bitcoin has not reacted dramatically, instead maintaining consolidation above critical levels. This suggests that major players are focusing on establishing positions rather than on immediate selling activities. As a result, sell-side pressure is structurally diminishing, which aids in maintaining price stability during this consolidation.

Bitcoin Holds Above Key Accumulation Levels

As of this writing, Bitcoin (BTC) is trading within the accumulation range of approximately $84,600 to $94,000, where buyers have effectively absorbed multiple sell-offs throughout December. The price garnered support after rebounding sharply from the lower boundary near $84,600, highlighting strong demand from buyers.

Since that point, Bitcoin has regained the crucial $94,000 level, which now serves as immediate support. This reclaim signals a shift from absorbing sell pressure to a potential expansion phase. Meanwhile, the Relative Strength Index (RSI) has increased from under 40 to about 63, indicating a solid momentum recovery without veering into overbought territory. Moreover, the Parabolic SAR indicator has flipped below the price at approximately $91,800, indicating a favorable trend for buyers. With prices pushing above $95,500 and aiming towards resistance near $106,600, the structure appears more likely to continue ascending rather than revert to consolidation.

Bitcoin technical analysis
Source: TradingView

High Profitability Without Heating Up

Currently, the Market Value to Realized Value (MVRV) ratio stands at 1.6909, having decreased by 1.23%. This reading indicates that holders are still enjoying profitable positions. Importantly, it does not signal extreme unrealized gains. Historically, high distribution risk arises at significantly elevated MVRV levels. Instead, the recent drop points to a minor compression of profits rather than aggressive selling activity.

Long-term holders continue to absorb market volatility, keeping supply pressure in check. The absence of significant MVRV spikes indicates that speculative greed hasn't taken hold. This equilibrium allows Bitcoin to consolidate while preserving a healthy structure. Therefore, profitability contributes to stability instead of indicating exhaustion.

MVRV Ratio
Source: CryptoQuant

Positive Leverage Rebuilds

As of now, funding rates have shifted decisively into positive territory, surging by 1,047.79% to 0.002875. This rebound suggests renewed long-term confidence following previous declines. However, funding levels remain moderate overall, as traders are exercising restraint by avoiding excessive leverage. This approach minimizes liquidation risk during market pullbacks.

Furthermore, funding adapts rapidly to price changes, indicating disciplined positioning rather than speculative excess. Leverage appears to be rebuilding gradually, not in an aggressive manner. This disciplined activity in derivatives supports ongoing growth rather than creating instability, setting a stark contrast to overheating rallies, favoring persistence and a controlled ascent.

Funding Rates
Source: CryptoQuant

Traders Lean Toward Long Positions

Data from Binance shows that 57.11% of accounts are holding long positions while 42.89% maintain short positions, resulting in a Long/Short Ratio of 1.33 at this time. This distribution indicates a clear bullish sentiment without overcrowding in long positions. Importantly, long positions dominate without reaching extreme levels, while the presence of shorts continues to limit one-sided risks. This balance suggests a cautious yet confident approach among traders, which contributes to structural stability and mitigates forced liquidations. Thus, Bitcoin remains flexible as its price explores higher levels.

Trader Positions
Source: CoinGlass

In conclusion, the current market structure for Bitcoin demonstrates strength built on control rather than speculation. Institutional buying is consistently reducing available supply, while Bitcoin remains above key accumulation levels. Momentum indicators suggest potential for further gains without overheating, and leverage is being rebuilt in a disciplined manner. Additionally, trader positioning remains constructive without leading to overcrowding. If these dynamics persist, Bitcoin is more likely to continue its upward trend rather than retreat into lower accumulation zones.

Key Takeaways

Bitcoin Accumulation Tightens Supply

Bitcoin Holds Above Key Accumulation Levels

High Profitability Without Heating Up

Positive Leverage Rebuilds

Traders Lean Toward Long Positions

Final Thoughts