In the dynamic world of cryptocurrency, a noteworthy trend is unfolding: long-term Bitcoin 
$76,215 holders, often referred to as “Diamond Hands,” are locking up around 80% of the circulating supply in their wallets. According to analyst CrediBULL Crypto, this phenomenon lays the groundwork for a potential rally. Previous similar supply crunches propelled Bitcoin from $43,000 to $73,000 and from $58,000 to beyond $100,000. Trading around $108,312 currently, the premier cryptocurrency could potentially ascend to $150,000 with incoming buyer demand.
How Supply Shortages Affect Bitcoin’s Price
Blockchain data tracking Bitcoin’s supply reveals that four-fifths of the total supply is held in wallets unwilling to sell. As this ratio increases, fewer coins remain in circulation, creating a leverage effect on the price when new demand arises.
CrediBULL Crypto’s chart highlights two critical thresholds observed at the end of 2024. The first was a $30,000 surge following the $43,000 squeeze, and the second was a similar scenario at $58,000, after which Bitcoin reached six-figure prices. The current situation, according to the analyst, corresponds to an even stronger squeeze than in the past examples, suggesting that even a slight increase in demand could trigger a rapid price escalation.
Although this significant supply reduction makes the market more resilient to selling pressure, it also sets the stage for rapid rises when buying intensifies. In summary, a minor uptick in demand could swiftly drive the price upwards.
Institutional Holdings Create Additional Upward Pressure on Price
Companies holding Bitcoin in their balance sheets are also reducing the available supply. According to data from Bitcointreasuries, firms like Strategy, controlling 597,325 BTC, lead the list. Other companies such as Marathon Digital Holdings, Metaplanet, GameStop, Genius Group, Blockchain Group, and Nakiki SE continue to amass BTC. This trend reduces the supply on exchanges and sustains the price in the long term.
CrediBULL Crypto predicts that the next movement will be larger and more powerful than the previous two leaps, fueled by both individual accumulation and BTC drawn into institutional treasuries. The analyst foresees the price easily experiencing a $50,000 surge to test the $150,000 threshold. This forecast implies that short-term price fluctuations are insignificant.
