OTC Bitcoin Reserves Hit Record Lows! Will This Trigger a Supply Shock and Send BTC Soaring?

Bitcoin’s over-the-counter desks (OTC Desks) are experiencing a considerable reduction in reserves, raising concerns about an imminent supply squeeze in the market. Recent data has shown that OTC desk balances have plunged from a 480,000 BTC in September 2021 to just around 146,000 BTC as of early 2025. This stark decline reflects the increased institutional demand as large players, including corporations and hedge funds, rely heavily on OTC desks for private transactions without impacting market prices.

Institutional Scramble Depleting OTC Supplies!

The dwindling OTC Bitcoin reserves is the result of substantial institutional purchases. For instance, ETFs and major companies have absorbed over 750,000 BTC, further squeezing the current supply. Experts warn that as OTC Bitcoin reserves diminish, institutions may start buying it directly from the exchanges. This could lead to massive volatility spikes and price fluctuations due to the larger orders.

Also, market dynamics have shifted; Bitcoin’s dominance in the cryptocurrency space has increased to 58.3%, showcasing off-the-charts institutional interest. If these institutions resort to exchange-based transactions, it could send shockwaves across the Bitcoin market, as prices will soar. To add to that, indicators suggest that Bitcoin is also nearing miner capitulation, which may lead miners to sell off reserves, further affecting market dynamics and liquidity.

High Interest May Launch Bitcoin Prices!

As the market adjusts to these developments, analysts have deduced that the ongoing supply squeeze could usher Bitcoin to new heights. While Bitcoin faces a temporary setback with the crypto market crash, its worldwide interest stays strong. The situation right now is poised for a potential surge. Interested buyers will be scrambling for limited assets. The implications of the tightening supply also highlight the importance of watching OTC desk activities as a reliable indicator of price movements. 

As the world expresses bullish sentiment for Bitcoin, let us take a look at its recent performance and try to make an updated BTC price prediction. 

BTC Price Analysis of Last 24 Hours: Market Crash Haunts Bitcoin, Investor Sentiment Remains Bullish

Bitcoin began trading at $87,100. In the beginning, it seemed to be going through some range-bound fluctuations, working between the $87,600 resistance and $86,820 support. BTC attempted to break out upward, but it wasn’t to be. The failure caused a significant trend reversal, as a death cross led BTC into a steep downtrend. On the way, the downtrend found the support of another death cross at 4:00 AM UTC. The RSI also indicated high selling pressure, as it ventured into the oversold region. By 7:45 UTC, Bitcoin was trading at $85,170.  It soon entered a trading range. A golden cross was observed, but was not able to carry Bitcoin out of the range, as Bitcoin found strong resistance at the $85,500 mark. 

Chart 1: analyzed by raodevansh18, published on TradingView, March 29, 2025

Bitcoin’s failure to break resistance resulted in another downtrend, supported by a death cross at 13:00 UTC. Eventually, Bitcoin was seen at $83,360 support. A golden cross appeared an hour later, and the BTC price commenced a slow ascent. But Bitcoin soon faced rejection at $86,400, and the trend reversed. As of the last update, the coin was seen resting on the $83,360 support. 

BTC Price Prediction: Will Bitcoin Recover Today?

Keeping in mind that the market is still recovering from yesterday’s crash, Bitcoin’s recovery may take time. While a huge amount of interest pours in from all directions, the BTC price is bound to grow. For now, the resistance trendline seems to be falling. A bearish triangle can be seen in the works, so it looks like Bitcoin will abandon current support levels and dip lower. Any positive market activity will take place in the second half of the day. With OTC reserves running low, we may be looking at fascinating times in the coming months.

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