Bitcoin (BTC) accumulator addresses showed a surge in demand in December, with 225,280 BTC in net acquisitions by these investors as of December 23. according to at CryptoQuant.
The move represents a monthly increase of 82.6%.
On the other hand, total sell-side liquidity – the amount of Bitcoin available for sale on exchanges and exchange-traded funds – fell by around 590,000 BTC during the same period.
Notably, this drop in selling pressure is linked to a sharp contraction between December 22 and 23, when the amount of Bitcoin ready for sale fell by 520,000 BTC.
Demand absorbs selling pressure
According to the report, tThe supply on over-the-counter (OTC) trading desks, which handle large trades, fell from over 421,000 BTC to 403,000 BTC. These figures suggest that investor demand will continue to absorb selling pressure.
Additionally, the cash inventory ratio, which measures how quickly current supply can meet investor demand, fell from 12 months to 5.5 months in December.
Data from CryptoQuant also revealed that Bitcoin whales, whose addresses hold more than 1,000 BTC, sold almost 8,600 BTC this month as of December 23.
However, new investors are absorbing this supply, with the number of short-term holders increasing by 3% over the past week. Short-term holders have accumulated 641,789 BTC over the past year, bringing their total holdings to 3.81 million BTC, just 70,000 BTC below the all-time high recorded on December 15.
Potential short-term decline
Although Bitcoin has posted a correction of up to 14.2% since hitting its all-time high above $108,000 on December 17, it is on track to meet analyst predictions to regain its composure and resume its upward movement.
However, CryptoQuant community analyst Onatt recommended caution, as the supply of Tether USD (USDT) in exchanges is decreasing while the supply of BTC is increasing slightly.
While this does not signal a prolonged bearish phase, it could indicate further downside potential in the coming days.
