BTC earlier this week briefly plunged to $94,500, but on Friday it steadily rose from a low of $99,200, and this (14th) morning it surged to $102,666, a gain of nearly 3.5% during the period. As of the time of writing, it is reported at $102,066, up about 2.4% in the last 24 hours, challenging the historical high of $104,000.
As for the price of Ether (ETH), it briefly broke through $3,968 on Saturday morning, but the upward momentum was quickly extinguished, and it fell back to above $3,900 and consolidated. As of the time of writing, it is temporarily reported at $3,917, down about 0.1% in the last 24 hours.
10x Research: BTC Supply Tightening, Exchange Balance Signals Indicate a "Squeeze" Scenario
It is worth noting that the crypto research firm 10x Research wrote on X today (14th) pointing out that there have been more and more discussions about the "tightening of BTC supply" recently, especially as BTC ETFs and MicroStrategy continue to accumulate, the available supply of BTC has decreased, laying the foundation for a potential "Squeeze" scenario, which may drive the price of BTC further upward.
On the other hand, the recent significant decrease in the BTC balance on exchanges may also fuel the "Squeeze" scenario. Over the past 30 days, there has been a net outflow of 124,000 BTC from exchanges. Specifically:
- Coinbase, which has the largest BTC reserves, has seen an outflow of 72,000 BTC, almost 10% of its total balance, and its current total BTC balance is 748,000 BTC.
- Binance has seen an outflow of 29,000 BTC, with a BTC balance of 570,000 BTC.
- Other major exchanges, such as Gemini, OKX, and Kraken, have also seen significant outflows, with Kraken's outflow accounting for about 7-8% of its holdings.
If these trends continue and demand remains strong, the market may face a severe squeeze on the supply of BTC.
The introduction of BTC ETF options may further exacerbate this situation, and may even trigger additional "Gamma Squeeze", amplifying the price pressure.
CryptoQuant: ETH Poised to Challenge $5,200 All-Time High
Furthermore, according to a report by CryptoSlate, the blockchain analysis platform CryptoQuant is bullish this week that ETH has the potential to break through the $5,000 mark for the first time.
On the one hand, the "significant increase in the ETH holdings of spot ETFs" has occurred, with the total ETH held by these ETFs in the US increasing from 3.095 million ETH to a record 3.41 million ETH since their launch in July 2024, which may generate significant upward momentum for ETH, pushing the asset close to or even higher than its historical high.
On the other hand, the total supply of ETH has reached 120 million ETH, the highest level since April 2023. And the amount of ETH burned through transaction fees has grown from an average of 80 ETH per day in August to over 2,700 ETH.
The report believes that this dynamic will exert deflationary pressure on ETH, as the burn rate may exceed the issuance of new ETH during periods of increased network activity, leading to supply tightness and creating favorable conditions for the appreciation of ETH prices. Analysts estimate that with an realized price of $2,300 for ETH, ETH has the potential to reach $5,200.
