Bitcoin may hit $110K as Strategy buys 3x new BTC supply

Bitcoin may invalidate its recent bear flag setup after corporate treasury vehicle Strategy acquired 46,233 BTC in just over a month, nearly three times the new supply mined during the same period.

The significant accumulation, sourced from the original Cointelegraph report, highlights a massive institutional demand that is currently outstripping the creation of new Bitcoin. On-chain data from Glassnode confirms a significant outflow of BTC from exchanges to private wallets, corroborating the large-scale purchase.

In the past month, approximately 16,200 BTC were created, while the single entity Strategy purchased 46,233 BTC. This creates a supply squeeze, reducing the available Bitcoin on the market and putting upward pressure on the price. The purchase represents a strong signal of institutional conviction in Bitcoin as a treasury reserve asset.

This level of accumulation could absorb selling pressure and potentially invalidate the bearish technical setup, with some analysts now eyeing a potential run to the $110,000 level. The move by Strategy could encourage other corporate treasuries to follow suit, further bolstering demand and impacting Bitcoin's long-term price trajectory. This action, coupled with the upcoming Bitcoin halving, creates a bullish outlook for the asset.

This article is for informational purposes only and does not constitute investment advice.