Bitcoin is experiencing a strong upward trend, having increased by 11.61% over the past week as it approaches its record high of $124,457. Amidst this optimistic development, Matthew Sigel from VanEck has shared another encouraging update.
Self-Custody of Bitcoin Tightens Market Liquidity
Sigel has observed that cryptocurrency exchanges are witnessing a reduction in their reserves. In his post on X, he mentioned that if this pattern persists, there could be a Bitcoin shortage across exchanges starting October 6.
He suggested it might be wise to purchase some Bitcoin before any scarcity occurs. However, one user challenged VanEck’s executive by pointing out that such scarcity narratives have circulated for the past four years.
Sigel responded firmly by maintaining that scarcity is indeed happening: “Well, I only got the calls from the exchanges today. I told them we aren't selling,” he noted.
“Well, I only got the calls from the exchanges today. I told them we aren't selling 🤷‍♂️”
— matthew sigel, recovering CFA (@matthew_sigel) October 4, 2025
This statement implies major holders and institutions like VanEck are being approached to provide Bitcoin to exchanges. If accurate, this suggests a potential supply shock with demand surpassing supply levels.
The movement of many Bitcoin holders transferring their assets into self-custody often results in decreased liquidity on exchanges. This situation creates an ideal environment for further price increases in Bitcoin.
Currently trading at $122,179.35 as per recent data—an increase of 1.52% within 24 hours—the leading cryptocurrency reached an intraday high of $123,944.70 and remains just 1.89% shy of breaking its ATH again.
The surge in price has also led to a rise in trading volume by 1&46;%12 at $I.51 billion during this period&46;Â “Uptober” momentum appears to be gaining traction among traders&46;
Institutional Investments Hint at New Price Peaks for Bitcoin
A notable point is how prepared investors seem regarding pushing BTC towards new highs as they have invested around $45#3 billion through open interest positions related directly back onto these assets themselves #8211# signaling confidence about future gains ahead potentially reaching even greater heights soon enough too #33#
&65Meanwhile Geoff Kendrick analyst Standard Chartered sees possibility hitting &dollar200k end year due positive correlation between BTC US Treasury term premiums rising amidst government shutdown concerns &65;/P>