Bitcoin (Bitcoin) aggregator addresses showed a sharp increase in demand in December, with 225,280 bitcoins in net purchases by these investors as of December 23. according to to CryptoQuant.
This movement represents a monthly increase of 82.6%.
On the other hand, total sell-side liquidity – the amount of bitcoins available for sale on exchanges and exchange-traded funds – fell by approximately 590,000 bitcoins over the same period.
Notably, this reduction in selling pressure is related to the sharp contraction between December 22nd and 23rd, when the amount of bitcoins available for sale fell by 520,000 bitcoins.
Demand absorbs selling pressure
According to this report, THis supply on over-the-counter (OTC) trading desks that process large trades has dropped from more than 421,000 bitcoins to 403,000 bitcoins. These numbers suggest that investor demand will continue to absorb selling pressure.
In addition, the ratio of liquidity at which current supply can meet investor demand fell to 5.5 months from 12 months in December.
CryptoQuant data also showed that Bitcoin whales, addresses with more than 1,000 bitcoins, sold nearly 8,600 bitcoins this month through December 23.
However, new investors are snapping up the supply, with short holders up 3% over the past week. Short holders have accumulated 641,789 bitcoins over the past year, bringing their total holdings to 3.81 million bitcoins, just 70,000 bitcoins short of the all-time high set on December 15th.
Short-term potential downside
Despite having corrected 14.2% since hitting a high of more than $108,000 on December 17, Bitcoin is on track for analysts to regain composure and resume its upward momentum.
However, Onat, CryptoQuant community analyst It is recommended Caution, as USD Tether supply (USDT) on exchanges decreases while the supply of Bitcoin increases slightly.
While this may not indicate a prolonged bearish phase, it could indicate the potential for further declines in the coming days.
