Bitcoin Approaches $72,000: Supply Squeeze and Regulatory Tailwinds Create Bullish Momentum, BTC Catalysts Revealed

On March 13, Bitcoin’s price briefly approached $72,000 today, continuing the upward trend since this week. Market participants believe that this rebound is mainly driven by multiple factors, including improved regulatory signals, declining Bitcoin reserves on exchanges, and ongoing institutional inflows.

Midweek, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced the launch of a crypto regulatory coordination plan. The two agencies plan to establish data sharing mechanisms and simplify industry reporting requirements to reduce regulatory uncertainty caused by separate enforcement. Although this plan is not yet formal regulation, the market generally views it as an important sign of increasing clarity in U.S. digital asset regulation. Meanwhile, the Biden administration has also expressed multiple times recently that it aims to provide a clearer policy environment for the crypto industry.

Macro-level changes have also affected market sentiment. Previously, tensions in the Middle East pushed international oil prices close to $100 per barrel and exerted pressure on global stock markets. However, U.S. Treasury Secretary Scott Bessent later stated that the U.S. would allow the purchase of stranded Russian crude oil, causing oil prices to fall about $2 per barrel. As energy market volatility eased, Bitcoin’s price quickly broke through $70,000 and continued to rise.

On-chain data shows a clear tightening of Bitcoin supply. CryptoQuant statistics indicate that as of March 12, reserves held on centralized platforms dropped to about 2.75 million BTC, the lowest level since 2019. Meanwhile, long-term holders currently control approximately 14.5 million BTC, assets that have not moved in over five months.

Ongoing institutional inflows are also reducing circulating supply. Spot Bitcoin ETFs attracted about $570 million in net inflows over the past week, and daily Bitcoin withdrawals from trading platforms once reached 32,000 BTC. Additionally, several listed companies continue to increase their Bitcoin holdings, with firms like Strategy accumulating nearly 350,000 BTC.

Analysts point out that when the tradable Bitcoin on exchanges decreases, even limited demand growth can significantly impact prices. Currently, this situation is widely described as a “supply squeeze.”

From a technical perspective, Bitcoin briefly fell to around $60,000 in February, then gradually recovered and oscillated between $67,000 and $71,000. If the price successfully breaks through the $72,000 resistance level, it could trigger short covering and further amplify upward momentum. Currently, daily trading volume remains above $50 billion, and the breakeven electricity cost for mining companies is roughly between $64,000 and $65,000.