Bitcoin Supply Tightens as IFP Flips Bullish

Bitcoin is drawing renewed attention from analysts who track supply dynamics and exchange flows. Two indicators are now pointing in a constructive direction: a large share of coins has remained unmoved for more than six months, and the Inter-exchange Flow Pulse, or IFP, has turned bullish again.

The supply reading matters because coins that stay dormant for extended periods are less likely to be sold into near-term market strength. A higher share of inactive supply can reduce the amount of bitcoin readily available on exchanges, which may amplify price moves if demand continues to firm.

The IFP signal adds a second layer of context. When exchange-to-exchange flow conditions improve, it can indicate that market participants are positioning for stronger trend conditions. While the indicator does not guarantee direction, its shift back to bullish territory suggests that internal market structure has improved.

The combination of tight supply and a favorable flow trend comes as broader crypto sentiment remains elevated. The Fear and Greed Index stands at 74, which reflects a market still leaning toward risk-taking. That backdrop can support further upside, but it also leaves bitcoin vulnerable to sharper swings if momentum stalls or profit-taking accelerates.

Analysts will likely watch whether dormant supply continues to rise and whether exchange flow data confirms sustained accumulation behavior. If both trends persist, bitcoin could remain well supported on pullbacks. If either signal weakens, the market may need fresh spot demand to sustain the current setup.