Bitcoin's "Absorption Signal": Institutional Demand Hints at Supply Shock
Despite Bitcoin's (BTC) choppy trading and a "Fear" reading on the Fear & Greed Index, institutional demand is absorbing twice the amount of new Bitcoin supply entering circulation, according to reports. US spot Bitcoin ETFs saw net inflows of 5,150 BTC as of Jan. 7. Strategy purchased 1,283 BTC, bringing its total holdings to 673,783 BTC. Together, these visible institutional channels pulled roughly 6,433 BTC off the market while miners produced an estimated 3,137.5 BTC. Public companies collectively hold 1,094,426 BTC, representing roughly 5.2% of Bitcoin's 21 million supply cap. This dynamic frames the next several years as structurally bullish regardless of short-term price volatility.
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