Bitcoin’s Historic High at $122,884 Driven by Surging Demand and Tightening Supply, Says 21Shares Strategist

Bitcoin demonstrates resilience as it maintains an upward trajectory supported by robust market fundamentals. According to Matt Mena, a crypto research strategist at 21Shares, the current market dynamics reveal a significant imbalance between growing demand and a shrinking supply, reducing the likelihood of a near-term bearish reversal. This structural scarcity is underscored by historically low Bitcoin reserves on exchanges and OTC platforms, signaling a tightening supply environment amid escalating investor interest.

Recent data highlights Bitcoin’s surge to a record high of $122,884, driven by buyers who exhibit low price sensitivity and are acquiring assets faster than miners can offload them, as noted by Bitfinex. However, André Dragosch, research director at Bitwise, emphasizes that retail investor engagement remains subdued, evidenced by stagnant Google search trends for “Bitcoin.” This divergence suggests that institutional and high-net-worth participants are currently the primary market drivers, rather than retail investors.