Bitcoin Market Faces Supply Squeeze As Scarcity Index Turns Positive Again
After hitting a weekend high of $116,689 on September 15, Bitcoin (BTC) fell barely, buying and selling simply above $114,000 on the time of writing. However, contemporary information from Binance crypto alternate signifies that the Bitcoin Scarcity Index lately witnessed its first spike since June 2025.
Bitcoin Scarcity Index Spikes, Will BTC Rally?
According to a CryptoQuant Quicktake publish by contributor Arab Chain, the Bitcoin Scarcity Index witnessed its first spike yesterday since June 2025. The analyst referred to the most recent alternate information from Binance to verify the spike in Bitcoin Scarcity Index.
For the uninitiated, the Bitcoin Scarcity Index measures how restricted the obtainable provide of Bitcoin is on exchanges relative to rapid shopping for demand. A spike within the index often signifies robust accumulation by massive buyers or establishments, signaling potential value stress to the upside.
In their evaluation, Arab Chain remarked that the most recent spike within the Bitcoin Scarcity Index signifies that both a considerable amount of BTC was withdrawn from Binance, or the quantity of promote orders fell considerably on the alternate.
As a outcome, the obtainable provide of BTC on Binance all of a sudden grew to become scarce. Notably, such actions are often related to the entry of enormous buyers – comparable to whales or sharks – who maintain substantial portions of BTC. Arab Chain added:
The index jumps when rapid shopping for energy exceeds obtainable provide, as if consumers are racing to accumulate Bitcoin available on the market This sort of spike is commonly linked to constructive information or sudden capital inflows. The identical sample occurred final June and endured for a number of days, after which Bitcoin climbed to round $124,000.
BTC might verify the start of a robust accumulation section and the continuation of the uptrend if the Bitcoin Scarcity Index stays constructive for a number of consecutive days.
However, if the index rises quickly – adopted by an equally fast descent – it might counsel speculative exercise or order liquidations. Such a section is commonly adopted by a interval of calm or a value correction.
In current months, the Bitcoin Scarcity Index has reached new all-time highs (ATH). The chart beneath exhibits the metric reaching as high as +6, earlier than rapidly falling towards impartial and even unfavorable territory.
Is BTC Losing Momentum?
Arab Chain concluded by saying that the distinction between BTC’s high value, and the index’s fast transfer again to or beneath zero counsel that some robust shopping for momentum has began to say no.
That stated, some positive signs persist. For instance, the flagship cryptocurrency lately broke above the mid-term holder breakeven, hinting {that a} contemporary rally to the upside could also be on the horizon.
From a technical perspective, BTC lately flashed the Golden Cross, a uncommon bullish sign that has crypto pundits forecasting a possible value appreciation of 100%. At press time, BTC trades at $114,601, down 0.9% previously 24 hours.