Bitcoin dipped below $107,000 on Tuesday, extending a modest correction from the previous session. Despite the short-term pullback, underlying demand remains robust—particularly from institutional players—providing a strong floor for the world’s leading cryptocurrency. At the same time, exchange reserves have dropped to their lowest level in six years, signaling reduced selling pressure and growing long-term confidence in BTC.
Record-Low Exchange Reserves Signal Strong Holder Conviction
According to data from CryptoQuant, Bitcoin’s total reserve across all major exchanges has declined to just 2.44 million BTC—the lowest level since 2018. This metric is closely watched by analysts as a proxy for market sentiment: when coins leave exchanges, they are typically being moved to private wallets or cold storage, indicating that investors are holding rather than selling.
👉 Discover how low exchange reserves can signal the next major market move.
This structural shift suggests that long-term holders are absorbing supply, tightening availability on open markets and potentially setting the stage for future price appreciation. With fewer coins available for immediate sale, any uptick in demand could lead to sharp price reactions.
Corporate Accumulation Fuels Market Resilience
Even as Bitcoin experiences normal price corrections, corporate treasuries continue to accumulate at scale—underscoring a growing trend of digital asset adoption as a strategic hedge against inflation and currency devaluation.
MicroStrategy Reinforces Bitcoin Bet
MicroStrategy remains one of the most aggressive corporate adopters of Bitcoin. The company recently announced the purchase of 4,980 BTC between June 23 and June 29, spending approximately $532 million** at an average price of **$106,801 per BTC. This acquisition brings its total holdings to 597,325 BTC, with an average cost basis of $79,977 per coin**, now valued at over **$42.4 billion.
CEO Michael Saylor continues to champion Bitcoin as a superior treasury reserve asset. Since adopting this strategy in 2020, the company has seen substantial returns, including a 64% gain in 2024 alone. This bold approach has drawn both scrutiny and admiration across financial circles, positioning MicroStrategy as a bellwether for institutional crypto adoption.
Japan’s MetaPlanet Joins the Charge
Global interest isn’t limited to U.S. firms. Japan-based MetaPlanet recently expanded its Bitcoin holdings by acquiring 1,005 BTC worth $108.15 million**, paying an average of **$107,601 per unit. The company now holds 13,350 BTC with an average acquisition price of $97,831**, bringing the total portfolio value to **$1.31 billion.
This growing wave of corporate adoption highlights a shift in how businesses view Bitcoin—not as a speculative asset, but as a long-term store of value comparable to gold or foreign currency reserves.
Seasonal Trends: Is Q3 Poised for Stability?
A recent report by Bitfinex Alpha suggests that Bitcoin historically exhibits lower volatility during the third quarter of the year. On average, Q3 returns have hovered around 6%, with fewer extreme swings compared to other periods.
Analysts note that technical support remains firm between $94,000 and $99,000. As long as Bitcoin maintains this range, the broader bullish structure stays intact. However, a breakout to new all-time highs will likely require a strong catalyst—such as increased ETF inflows, macroeconomic shifts, or further institutional adoption.
Profit-Taking Risk on the Horizon?
Despite strong fundamentals, warning signs are emerging from on-chain data. According to Glassnode, the percentage of Bitcoin supply currently in profit surged from 87% to 98% over the past month—a level historically associated with potential profit-taking.
👉 Learn how on-chain data can help predict market tops and bottoms.
A similar peak occurred on January 21, when 98.8% of supply was in profit, followed by a correction that saw Bitcoin fall from $109,000 to $74,000 by April. While past performance doesn’t guarantee future results, elevated profit levels suggest traders may become increasingly sensitive to negative news or macroeconomic developments.
Core Keywords
- Bitcoin price
- Exchange reserves
- Corporate Bitcoin adoption
- MicroStrategy BTC holdings
- On-chain analysis
- Institutional investment
- Market correction
- Profit-taking signals
Frequently Asked Questions (FAQ)
Q: Why are low exchange reserves bullish for Bitcoin?
A: When Bitcoin leaves exchanges, it means fewer coins are available for immediate sale. This reduces liquid supply and often reflects strong holder confidence, which can support higher prices over time.
Q: How does corporate buying impact Bitcoin’s price?
A: Large-scale purchases by companies like MicroStrategy create sustained demand, absorb available supply, and signal confidence in BTC as a long-term asset—factors that can drive price appreciation.
Q: What does it mean when 98% of Bitcoin supply is in profit?
A: It indicates that nearly all existing coins are worth more than their purchase price. Historically, such levels have preceded periods of profit-taking and short-term pullbacks.
Q: Can Bitcoin rebound after a correction?
A: Yes. Corrections are normal in bull markets. As long as key support levels hold and fundamentals remain strong—such as low exchange reserves and rising institutional adoption—Bitcoin is well-positioned for future growth.
Q: Is Q3 typically good for Bitcoin?
A: Data shows that Q3 tends to be less volatile with moderate average returns (~6%). While explosive moves are less common, this period often sets the foundation for year-end rallies.
Q: What could trigger the next major surge in Bitcoin?
A: Potential catalysts include spot ETF inflows, Federal Reserve rate cuts, geopolitical uncertainty, or further corporate treasury adoption—all of which could reignite strong buying pressure.
Broader Market Context
While Bitcoin remains the focal point of crypto markets, broader macro trends are also shaping investor behavior. A weakening U.S. dollar—driven by concerns over fiscal policy and expectations of Fed rate cuts—is boosting demand for alternative assets like gold and Bitcoin.
Gold recently climbed above $3,340 per ounce, supported by declining real yields and dollar weakness. Similarly, Bitcoin is increasingly viewed as a digital counterpart to gold—a decentralized, scarce asset that thrives in uncertain economic environments.
👉 See how macro trends are driving demand for decentralized assets.
Meanwhile, oil prices remain range-bound ahead of an upcoming OPEC+ decision on production increases. With global supply expected to grow and geopolitical tensions easing, commodities face headwinds—but hard assets like Bitcoin and gold continue to attract capital.
Final Outlook
Bitcoin’s current dip should be seen within the context of a maturing asset class undergoing healthy consolidation. With exchange reserves at six-year lows, corporate demand surging, and macro tailwinds building, the long-term trajectory remains constructive.
While short-term profit-taking risks exist, especially with nearly all supply in profit, the structural supports for Bitcoin have never been stronger. Investors who focus on these fundamentals—rather than daily price swings—are best positioned to benefit from the next phase of adoption and growth.