Bitcoin’s Supply Crunch: OTC Reserve Drain Signals Bullish Future Above $110K

Bitcoin continues to demonstrate remarkable resilience, holding firm above the $110,000 mark despite short-term bearish pressures. A significant factor underpinning this strength is the dramatic depletion of over-the-counter (OTC) reserves, with 371,000 BTC (worth approximately $40.8 billion) exiting OTC wallets since 2021. This trend highlights a tightening supply pipeline, which could further bolster Bitcoin's price in the long term. Current withdrawal rates suggest that OTC balances may be entirely exhausted by July 2026 if the current pace persists. While immediate price action faces challenges, the overarching narrative remains bullish as supply constraints intensify. This development underscores the growing scarcity of Bitcoin, reinforcing its value proposition as a digital asset with finite supply. Investors and market participants are closely monitoring these dynamics, anticipating potential upward price movements as available liquidity diminishes. The combination of strong price performance and shrinking OTC reserves paints a compelling picture for Bitcoin's future in the global financial landscape.

Bitcoin Holds Firm Above $110K Amid OTC Reserve Drain

Bitcoin maintains its bullish stance above $110,000 despite mounting short-term pressure. The cryptocurrency's resilience comes as over-the-counter reserves show a dramatic depletion—371,000 BTC ($40.8 billion) have exited OTC wallets since 2021, signaling a tightening supply pipeline.

Current withdrawal rates suggest OTC balances could be exhausted by July 2026 if this trend persists. While bearish forces test immediate price action, the structural case strengthens as institutional accumulation accelerates. Market observers note this supply squeeze mirrors early phases of previous Bitcoin cycles, where scarcity preceded major rallies.

The Crypto Market Surges with Positive News and Global Liquidity Rise

Bitcoin breached the $110,000 threshold as bullish sentiment swept through the cryptocurrency market. The rally follows significant developments in the United States, including former President Trump's media company exploring Bitcoin reserves. Tariff negotiations and expanding global liquidity further fueled the upward momentum.

Analysts point to coordinated monetary policies across major economies as a key driver. Lark Davis highlights the European Union, China, and Japan's liquidity injections as creating fertile ground for risk assets. This macro backdrop aligns with crypto's historical performance during periods of expansive fiscal policy.

Trump Media's $2.5B Bitcoin Treasury Plan Sparks Stock Plunge

Trump Media & Technology Group (DJT) shares tumbled 9% following its announcement of a $2.5 billion private placement to establish a bitcoin treasury. The market reaction raises doubts about investor confidence in the company's crypto strategy.

The funding plan includes $1.5 billion in common stock and $1 billion in zero-interest convertible notes, with participation from 50 institutional investors. Crypto.com and Anchorage Digital will serve as custodians for the Bitcoin holdings, targeting completion by May 2025.

CEO Devin Nunes positioned Bitcoin as "an apex instrument of financial freedom," though the stock decline suggests skepticism about execution risks. The MOVE represents one of the most ambitious corporate Bitcoin adoption plays since MicroStrategy's treasury strategy.

Trump Media Announces $2.5 Billion Bitcoin Acquisition Strategy

Trump Media & Technology Group (DJT) has confirmed plans to acquire billions in Bitcoin, mirroring a corporate trend popularized by Michael Saylor's MicroStrategy. The company will fund $1 billion of the purchases through convertible debt and $1.5 billion via stock sales, targeting 50 corporate clients for capital raising.

CEO Devin Nunes framed Bitcoin as "the pinnacle tool for financial freedom," signaling DJT's intent to hold cryptocurrency as a strategic reserve asset. The move reflects growing institutional adoption, with projections suggesting 700 public companies may emulate similar Bitcoin strategies by 2025.

KindlyMD Acquires 21 Bitcoin Ahead of Merger with Nakamoto

KindlyMD (NAKA), an integrated healthcare services provider, has executed its Bitcoin treasury strategy by purchasing 21 BTC for approximately $2.3 million. The acquisition, funded through warrant exercises, marks the first step in Nakamoto Holdings' ambitious plan to accumulate 1 million BTC. "1 Nakamoto = 1m Bitcoin," declared CEO David Bailey, underscoring the merger's Bitcoin-centric vision.

The company's shares ROSE 3.9% following the announcement. The merger with Nakamoto Holdings, backed by $710 million in financing, mirrors MicroStrategy's successful Bitcoin accumulation playbook. This strategic pivot positions the combined entity as a notable corporate holder of cryptocurrency.

Trump Media Raises $2.5 Billion to Establish Bitcoin Treasury, Following MicroStrategy's Lead

Trump Media and Technology Group (TMTG), the parent company of Truth Social, Truth+, and Truth.Fi, has secured $2.5 billion in debt capital to build a Bitcoin treasury. The funding includes $1.5 billion in common stock and $1.0 billion in zero-interest senior secured convertible notes, subscribed by roughly 50 institutional investors.

The move mirrors MicroStrategy's aggressive Bitcoin accumulation strategy, positioning TMTG as another major corporate holder of the cryptocurrency. Private placement proceeds will be directed entirely toward Bitcoin purchases, signaling strong institutional conviction in digital assets as a treasury reserve.

This development marks a significant convergence of political media enterprises and cryptocurrency adoption, with potential implications for Bitcoin's liquidity and price stability. The zero-interest debt structure suggests innovative approaches to leveraging Bitcoin's appreciating potential without traditional financing costs.