Bitcoin Surges Above $112,000 Amid Historic Holder Supply Spike

Bitcoin recently surged past the $112,000 mark, reaching a peak of around $112,500, driven by strong institutional demand with $8.2 billion in net inflows into Bitcoin ETFs and an overall risk-on sentiment in financial markets. This rally aligns with a significant supply shock, as over 80% of all Bitcoin is currently held by long-term holders, a historical indicator that preceded previous major price increases of 72% and 84%. The high proportion of Bitcoin held by these 'diamond hands' limits circulating supply, potentially amplifying price gains when demand rises. Despite some price fluctuations, Bitcoin remains up substantially over the past year, with prices more than doubling from lows in 2024. Traders are also showing bullish sentiment by increasing positions in call options targeting a $130,000 price level, anticipating further upward momentum. Meanwhile, some investors are diversifying into decentralized finance projects like Mutuum Finance, which offers innovative lending platforms beyond Bitcoin’s scope.