Bitcoin may reach $96K after Institutions absorb 500% Daily New BTC Supply

Charles Edwards, founder of Capriole Investments, believes that Bitcoin (BTC), could reach $96,000 in June as more than five-times the BTC mined daily supply is absorbed by institutions.

BTC average price gains 24% after institution supply squeeze

The aforementioned is a Monday postEdwards claimed that the institutions were a sham “slurping up 500%+ of Bitcoin’s daily mined supply.”

BTC/USD daily graph vs. institutional purchasing market cap. Source: Capriole Investments

Then, there is the April 2024 halvingBitcoin miners produced approximately 450 BTC each day. This has kept the supply growth fairly stable. The rate of change, or ROC (the red line), hovered around 0.0022% on Monday.

By contrast, the ROC for institutional purchases (blue) is near 0.0139%. Demand momentum has risen more than five-times faster than supply.

Renewed ETF inflows BTC Purchases are steady Michael Saylor’s Strategy This demand has been fueled by the emergence of new technologies. In April they added approximately 70,000 BTC, which is more than the 13,500 BTC that was mined in the same time period.

Source: US Spot Bitcoin ETF net monthly flows and Strategy BTC’s holding. Source: Glassnode, BitBo.IO

“Every time it’s been this high before, price has shot up over the next week,” Edwards adds:

“The average return in prior cases is +24% over the next 1 month from here, that would take us to around $96K.”

Edwards pointed out that historically, when the institutional demand for Bitcoin exceeds the daily supply of the currency, BTC’s price has risen by an average of 24% over the next month. This would place the BTC value at around $96,000 in June.

Similar targets have also been shared by analyst Michaël van de Poppe, who said You can buy Bitcoins. “easily” The price of BTC spot ETFs has increased to $95,000 due to the renewed demand and technical factors.

Bitcoin sharks amass over 61,000 BTC within 30 days

Onchain data shows that supply is squeezed beyond ETFs, corporate buyers and even the largest of corporations.

Bitcoin “sharks,” entities that hold 100–1,000 BTC, have accumulated over 61,000 BTC in the past 30 days, according to data resource Glassnode.

BTC shark position change in relation to price. Glassnode Source

Smaller cohorts, including “fishes” holding 10–100 BTC and “crabs” holding 1–10 BTC, are also net accumulators during the same period.

BTC positional change of fish and crabnets vs. the price. Source: Glassnode

Both mid-sized and retail investors are steadily abusing supply. If the demand remains, BTC could reach $96,000 within the next couple of weeks.

Related: Strategy takes Bitcoin buying breather ahead of Q1 earnings report

Still, there are some analysts who urge caution citing the current bear flag configuration.

The aforementioned is a Monday post, trader Bitbull highlighted $60,000–$62,000 as a potential downside target if BTC corrects from the flag’s upper trendline toward the lower trendline.

BTC/USD Daily Chart Source: TradingView/BitBull

The trend line may be shifted downwards if the breakdown occurs below it. BTC price under $50,000.

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