And the increase in liquidity.

The decrease in the supply of Bitcoin on exchanges drives prices up, indicating increasing institutional interest.

The technical breakout of Bitcoin indicates strong upward momentum, with a key resistance level at $100,000. Immediate demand and ETF inflows are driving the price of Bitcoin higher.

As we enter the second quarter of 2025, the demand for Bitcoin in the spot market is clearly increasing. Inflows into major ETFs, such as the iShares Bitcoin Trust ETF (NASDAQ: IBIT), are a key factor. Last week, the IBIT Bitcoin investment fund saw an influx of $1.5 billion in new funds. This increasing institutional interest boosts liquidity while reducing supply in the market, which could push prices lower.

Unlike the peaks of 2021 and 2023, this increase in demand for Bitcoin in the spot market is supported by a more stable market with less reliance on leverage. The focus is now on direct purchases rather than derivatives.

At the same time, Bitcoin trading volume on exchanges has fallen to a five-year low. By the end of April, major investors $BTC