Bitcoin may face a major supply shock as exchange reserves hit the lowest point in years. CryptoQuant data shows reserves at the lowest level since it began recording this data in 2022.

Additionally, demand for Bitcoin is spiking from long-term holders despite price turmoils. This supply shock could become a major bullish signal for the coming months.

Is Bitcoin Headed for a Supply Shock?

Since Bitcoin has reached a new era of market integration and institutional acceptance, corporate and individual whales are acquiring as much as they can.

Last month, ETF issuers were buying it 20x faster than miners could produce it, and they collectively hold more than Satoshi Nakamoto. However, due to these trends, Bitcoin’s supply is in jeopardy.

As CryptoQuant data shows, around 2.5 million BTC is currently held in exchange reserves. This is the lowest reserve balance in nearly 3 years.

Additionally, the US Bitcoin ETF issuers and other corporate whales are very flashy buyers, but 69% of the supply is held by individuals. In fact, ETFs recently had their first weekly outflow of 2025, showing that the problem goes beyond them.

In other words, the supply crisis in Bitcoin is very real right now. Additionally, the vast majority of it has been mined already, with only 5.7% remaining. On top of that, unknown quantities are lost. A slight increase in demand could kick off a fresh, bullish cycle.

This demand may be materializing despite Bitcoin’s recent price declines. This week, the market has witnessed a sharp spike in Permanent Holder Demand, signaling strong confidence from individual users. These holders are also selling BTC less frequently. These factors could combine to create a Bitcoin supply shock.

“Soon every billionaire will buy a billion dollars of Bitcoin and the supply shock will be so great that we’ll stop measuring BTC in terms of fiat,” said Michael Saylor in a recent interview.

There’s also the consideration of a Bitcoin reserve in the US and many other countries. In the US, 20 states have currently proposed bills to establish a strategic Bitcoin reserve. If such strategies are approved, state and national governments will purchase BTC, and the supply will further decline.

So, at the current level, a Bitcoin supply chain is very much imminent. However, macroeconomic factors, such as interest rates and global tariffs, will also play a critical role.

Elon Musk’s recent name change on social media platform X (Twitter) inspired a parabolic surge for the HARRYBOLZ token.

It marks the second time Musk has inadvertently inspired a rally for a crypto token by changing his name on the popular social media platform.

Elon Musk Changes X (Twitter) Name To Harry Bōlz

While his X handle remains @elonmusk, the platform’s CEO has changed his account name to Harry Bōlz. In the immediate aftermath of this name change, the price of HARRYBOLZ rallied by over 3,000% before profit booking commenced.

Notably, this is not the first time Musk has used Harry Bōlz as his name on X. In April 2023, he pulled a similar move, leaving his followers baffled. At the time, followers speculated that the tech mogul was plotting his next major project. Meanwhile, others ascribed the move to his occasional acts playing with fans, saying it was nothing more than wordplay.

Moreover, in January 2023, Musk changed his name to Mr.Tweet and again to ‘Naughtius Maximus’ before reverting back to his original name. More recently, Elon Musk changed his name on X to Kekius Maximus, inspiring a 500% surge for the KEKIUS meme coin.

Cardano’s price has recently bounced back, rising by 18% over the last 24 hours. This recovery follows a notable correction, signaling that the bullish pattern ADA has been forming remains intact. 

After struggling for several weeks, the altcoin’s ability to regain momentum offers hope for continued positive price action.  

Cardano Traders Are Confused

Over the past month, Cardano investors have faced significant losses as the price of ADA continues to follow a downward trend. Most transactions were showing losses, with the market unable to sustain any meaningful rallies.

The recent shift toward transactions showing profits is a positive sign, indicating a potential change in market sentiment.  

As ADA’s price rose above recent lows, the volume of profitable transactions increased, signaling that investors are starting to recover from prior losses. This shift in transaction volume, with profits now edging out losses. It suggests that the altcoin is finding a stable support level, which could lead to further price appreciation.  

The macro momentum of Cardano has also shown signs of improvement. The funding rate, which fluctuated for the past two weeks, had been a sign of uncertainty among traders.

The lack of upward price momentum caused traders to shift from a positive to a negative stance in February, opting to capitalize on price declines instead.  

However, the funding rate has turned positive again, signaling a potential shift in trader sentiment. If Cardano continues its price uptick, traders could maintain a more bullish outlook. A sustained positive funding rate would further support this shift, reinforcing the possibility of ADA’s continued upward momentum in the near term.  

Cardano Price Prediction: Can ADA Secure Support at $0.85?

Cardano’s price rose 18% in the last 24 hours. It is currently trading at $0.80, having successfully breached the $0.77 resistance. The altcoin now aims to flip the $0.85 resistance into support.

A successful breach of this level could allow ADA to continue rising, attracting further investor interest. At the same time, this rise would keep the bullish descending wedge pattern intact.

Securing $0.77 as support is essential for ADA’s continued bullish movement. If this level holds, and $0.85 is flipped into support, Cardano could push towards $0.99, potentially even $1.00. Such a move would signify sustained momentum and potentially mark the start of a longer-term uptrend.  

However, if ADA fails to breach the $0.85 resistance, it could fall back to $0.77 or dip lower to $0.70. A decline to these levels would invalidate the current bullish thesis. This would also erase the recent gains and potentially lead to renewed selling pressure.