Bitcoin Experiences Supply Crunch as Scarcity Index Shifts to Positive After Several Months

Current Bitcoin Price and Market Trends: Bitcoin (BTC) has retraced slightly to around $114,601 after peaking at $116,689, with new data indicating potential for a bullish move as the Bitcoin Scarcity Index shows its first spike since June 2025.

Scarcity Index Implications: The spike in the Scarcity Index suggests strong accumulation by large investors, indicating that demand is outpacing supply, which could lead to significant price increases if the index remains positive.

Technical Indicators and Market Sentiment: Bitcoin has recently shown strength by breaking above key support levels and flashing a Golden Cross, which historically precedes strong rallies, although risks remain if it fails to hold the $114,000–$112,000 support range.

Future Outlook: The ongoing monitoring of the Scarcity Index and exchange flows will be crucial in determining whether Bitcoin can sustain its upward momentum and potentially achieve significant price gains.