Key Points
- Bitcoin’s price surged over 5% in the last 24 hours, signaling a potential bullish breakout.
- Bitcoin supply on centralized exchanges has declined sharply, indicating increased bullish sentiment among investors.
Bitcoin experienced a significant price surge of over 5% in the past 24 hours, trading at around $101K on December 12 during the mid-London session. The leading cryptocurrency retested its highest daily close of approximately $101,961, indicating a potential bullish breakout towards a new all-time high in the near future.
The price of Bitcoin has accumulated substantial bullish momentum since the beginning of the year, which could fuel an exponential rally in upcoming quarters. The leading cryptocurrency is already in the price discovery phase, suggesting that the bulls are in control.
Predicting Future Bitcoin Values
Several models have been proposed to estimate the potential top in the coming months in the event of a bullish breakout. FOMO traders are expected to continue speculating until the forthcoming Trump administration implements a strategic Bitcoin reserve, as promised during the campaigns.
According to on-chain data analysis provided by Coinglass, the supply of Bitcoin on centralized exchanges has sharply declined in the past year amid the ongoing bullish outlook. Over the past 30 days, the supply of Bitcoin on CEXes decreased by nearly 120K to around 2.23 million, led by Coinbase Pro.
The significant decline in Bitcoin supply on CEXes generally indicates that more investors are bullish in the long term, despite the ongoing midterm consolidation. Market data from CryptoQuant shows that Bitcoin’s investment products have attracted an average of $80 billion per month in the past year, thus outperforming the cash inflow in the past 15 years.
Bitcoin’s Market Outlook
US spot BTC ETFs have registered a net cash inflow of more than $4.2 billion in the past ten consecutive days. Major Bitcoin buyers in the past, such as BlackRock’s IBIT and Fidelity’s FBTC, have significantly contributed to the $34.5 billion in cumulative total net inflows since the historic approval by the US SEC.
The demand for Bitcoin among institutional investors is expected to remain high as nation-states prepare to adopt strategic BTC reserves. Top US officials have identified Bitcoin as digital gold, thus likely to offer more states a chance to pay off national debts in the long term.
Notably, BlackRock’s IBIT has already overtaken the company’s gold ETF in market value in less than a year of existence, thus indicating high demand from institutional investors.
Meanwhile, Bitcoin dominance has been declining in favor of the altcoin industry amid the ongoing altseason led by Ethereum (ETH). Furthermore, more FOMO traders have been betting on an imminent parabolic rally for altcoins.
