Bitcoin (BTC) is experiencing a supply crunch as both its exchange and OTC reserves continue to deplete. More BTC is flowing into wallets that are less likely to sell, leading to a scarcity of available coins. The supply crunch narrative for BTC is still prevalent, especially since the halving event. Older whales are starting to redistribute their holdings, while new cohorts of decisive holders are emerging. Despite this, the price of BTC has not seen a significant rally. OTC demand may come from corporate buyers and market makers, and if OTC reserves run low, buyers may have to turn to the open market, potentially affecting the price. Overall demand for BTC is decreasing, with both retail and institutions accumulating tokens more strategically. The fear and greed index for BTC has shifted into the 'fear' zone, indicating a more cautious sentiment. Despite this, BTC buying and demand for controlling actual coins continues. Derivative exchanges still dominate trading, but spot buying is trying to make a recovery. US-based buyers are showing significant demand for BTC, with the US dollar accounting for nearly 20% of all BTC trading volumes. The demand for BTC remains stable compared to altcoins, and Google searches for BTC show no signs of capitulation.



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