Bitcoin buckles under Arthur Hayes' prediction, demonstrating unexpected resilience above $114K
In the dynamic world of cryptocurrencies, Bitcoin continues to dominate the market, showing signs of recovery within an upward channel. This recovery is noteworthy, considering the ongoing "supply crisis" that has seen holders withdrawing their assets and storing them in cold wallets or self-custody, anticipating future appreciation.
This supply crisis has led to a significant drop in reserves, with the amount of Bitcoin available for trading on centralized platforms falling to levels not seen since 2018. By the end of July 2025, approximately 2.357 million BTC were in circulation on these platforms. This reduction in liquid supply has limited selling pressure, fostering a market structure characterized by stability and price strengthening.
The $113,000 support level has proven to be an essential pillar for Bitcoin price stability. If Bitcoin manages to surpass this mark, it could open the door to a bullish rally towards $120,000 and potentially even higher. However, a drop below $113,000, with support at $107,000, could mark a critical point for future direction.
The trend is also observed in over-the-counter (OTC) reserves, which have reached historical lows. Notable figures in the industry, such as Arthur Hayes, have been affected by this trend. While Hayes has recently sold part of his Bitcoin portfolio, he has not sold any Bitcoin itself, indicating a strategic long-term reserve. Interestingly, he has instead kept US dollars as reserves, suggesting a shift in his investment strategy.
Despite Hayes' bearish forecast, his decision not to sell his Bitcoin holdings underscores the strength of Bitcoin's current position. The continued inflow of capital into spot ETFs, which maintain sustained daily positive flows, further reinforces Bitcoin's strength.
In conclusion, Bitcoin's resilience amidst reduced liquid supply is a testament to its enduring appeal and potential for future growth. As the market continues to evolve, it will be interesting to see how Bitcoin navigates these changing conditions and what the future holds for this pioneering cryptocurrency.
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