Bitcoin (BTC) rallied sharply on Wednesday, recovering from Tuesday’s low of $105,328 to register an increase of nearly 3%, reclaiming $108,000, and settling at $108,845. The flagship cryptocurrency is up almost 3% in the past 24 hours, trading around $109,672 as buyers eye the $110,000 mark. 

BTC’s rally was driven by President Trump’s announcement that the US had struck a trade deal with Vietnam to lower tariffs on exported goods from 46% to 20%. 

Bitcoin Exchange Reserves Fall To Seven-Year Low 

Bitcoin (BTC) exchange reserves have dropped below 15% for the first time since 2018, according to data from Glassnode. A drop in Bitcoin supply could indicate an incoming price rally driven by a “supply shock.” A supply shock occurs when strong buyer demand is met with low BTC supply. Falling exchange reserves are typically associated with growing investor confidence and a shift towards long-term holding patterns. During such events, investors transfer their Bitcoin to cold wallets, reducing the liquid supply of the asset. Bitcoin whales often withdraw their assets from exchanges when the market enters an accumulation phase. 

Over-the-counter (OTC) desks are also facing a tightening supply. These desks facilitate large, private cryptocurrency trades by matching buyers and sellers. However, they depend on maintaining BTC reserves for swift and reliable trade execution. The cumulative balance of BTC held in known OTC addresses is at historic lows. CryptoQuant data showed a 21% decline in OTC address balances linked to miners since January. 

BlackRock Earns More Annual Fees From Bitcoin ETF Than Flagship S&P 500 Fund 

BlackRock, the world’s largest asset manager, is earning more in annual fees from its spot Bitcoin ETF than from its flagship S&P 500 fund. NovaDius Wealth Management president Nate Geraci stated, 

“IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure.”

BlackRock’s iShares Bitcoin ETF has over $75 billion in assets under management (AUM), and has generated $187.2 million in annual fees, $100,000 more than the iShares Core S&P 500 ETF (IVV). IVV, launched in 2000, is eight times larger than IBIT and holds $624 billion in assets under management (AUM). However, it charges almost nine times less at just 0.03%. Crypto executives were quick to praise the report, with Anthony Pompliano stating, 

“BlackRock's Bitcoin ETF drives more revenue than its S&P 500 fund. Bitcoin has Wall Street's full, undivided attention now.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is eying a move past $110,000 as market sentiment turned bullish after President Trump announced a trade deal with Vietnam. The flagship cryptocurrency started the week in the red, dropping 1.09% on Monday and 1.33% on Tuesday to settle at $105,742. However, market sentiment flipped to bullish on Wednesday and BTC rallied, rising nearly 3% to reclaim $108,000 and settle at $108,845. The price reached an intraday high of $110,281 during the ongoing session before declining to current levels. 

The flagship cryptocurrency rallied past $109,000 on Wednesday on the back of the global money supply (M2) reaching a new all-time high above $55 trillion. The price increase was outlined by a spike in derivatives activity, indicating renewed momentum. Open interest (OI) across major exchanges rose by 10% or $3.2 billion, thanks to a significant increase in capital in the market. The price increase was primarily driven by long positions, suggesting investor confidence in further upside. 

The recent price jump has prompted analyst optimism about an imminent new all-time high. According to Rekt Capital, a record weekly close above $109,000 could put BTC above its final resistance zone, unlocking price discovery and pushing it to new highs. 

BTC traded in the red the previous weekend, dropping 1.17% on Saturday and plunging below $100,000 on Sunday as selling pressure intensified. The price fell to an intraday low of $98,385 before recovering to reclaim $100,000 and end the weekend at $100,985. Bullish sentiment returned on Monday as BTC rallied, rising over 4% to reclaim $105,000 and settle at $105,443. Buyers retained control on Tuesday as the price rose 0.66%, crossing the moving averages and $106,000 to settle at $106,137. BTC continued pushing higher on Wednesday, rising 1.19% to cross $107,000 and settle at $107,397. Despite the positive sentiment, BTC lost momentum on Thursday, registering a marginal decline to slip below $107,000 and settle at $106,980.

Source: TradingView

BTC recovered despite the overwhelming selling pressure, rising 0.14% on Friday and 0.20% on Saturday to reclaim $107,000 and settle at $107,339. Bullish sentiment intensified on Sunday as the price rose nearly 1%, crossing $108,000 and settling at $108,350. BTC started the week in the red, dropping 1.09% on Monday and 1.33% on Tuesday to settle at $105,742. Market sentiment flipped to bullish on Wednesday and BTC rallied, rising nearly 3% to reclaim $108,000 and settle at $108,843. The current session sees BTC up 0.51%, trading above $109,000 as buyers eye $110,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.