- Bitcoin held by major companies has soared to nearly 6 million in the past two years.
- The BTC/USD pair needs to rally above $99,000 to reverse the drop to $76,000.
- On-chain data analysis shows that some BTC whales have accelerated their year-to-date decline.
Demand for Bitcoin (BTC) by institutional investors has increased rapidly over the past two years. U.S.-led regulatory clarity in major jurisdictions has increased institutional confidence in Bitcoin as a hedge against inflation and macroeconomic uncertainty.
Bitcoin supply on exchanges decreases
According to Glassnode’s on-chain analysis, the supply of Bitcoin on centralized exchanges has fallen sharply over the past two years to below 3 million coins. Major Bitcoin holders have increased their positions to approximately 5.94 million BTC, accounting for nearly 29.8% of the asset’s circulating supply.
At the time of writing, the distribution of Bitcoin holdings by major companies includes:
- Public companies hold approximately 1.07 million BTC.
- The government has about 620,000 BTC.
- The US spot ETF holds approximately 1.31 million BTC.
- The virtual currency exchange holds approximately 2.94 million BTC.
According to data from Glassnode, the supply of Bitcoin on centralized exchanges has declined more rapidly since the approval of the Spot BTC exchange-traded fund (ETF) and the re-election of US President Donald Trump. Additionally, President Trump has already introduced a Strategic Bitcoin Reserve for the United States through an executive order.
Historically, a decrease in the supply of Bitcoin on centralized exchanges has led to bullish sentiment due to supply and demand dynamics. The successful implementation of Strategy’s Bitcoin financial plan has attracted dozens of similar companies, increasing its holdings by 448% to approximately 1.08 million shares since 2023.
Related: Copper-to-gold ratio hits 15-year low: Will Bitcoin’s business cycle be reset?
Why is BTC price still below $100,000?
Over the past two years, Bitcoin prices have enjoyed bullish momentum, but that momentum has slowed recently. The conflict between proponents of Bitcoin’s four-year cycle and a new wave promoted by institutional investors and governments is intensifying.
Earlier this week, ARK Invest founder and CEO Cathie Wood said Bitcoin’s four-year cycle should be treated as a secondary opinion in the short term. Moreover, according to historical data, the four-year Bitcoin cycle will end in mid-October 2025, favoring a longer business cycle.
Bitcoin price recently fell below the average of the MVRV Extreme Deviation Price Band at $99,000 due to an escalating conflict between short-term and long-term investors. According to crypto analyst Ali Martinez, BTC needs to rise above $99,000 to override the medium-term bearish sentiment heading towards $76,000.
According to the analyst, some of the largest Bitcoin whales have offloaded 170,500 BTC over the past year, which could be distributed to the altcoin market.
Related: Bitcoin defends macro support: $110,000 breakout required for correction to end
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