Bitcoin Pops To $88,000 But Don't Get Too Excited: On-Chain Data Says 'Dead-Cat Bounce'

Bitcoin (CRYPTO: BTC) remains range-bound below $90,000 as on-chain data points to a growing supply–demand mismatch rather than a purely macro-driven stall.

What Happened: CryptoQuant says the supply imbalance between Bitcoin and Ethereum (CRYPTO: ETH) is worsening as overall buying liquidity continues to dry up.

Instead of fresh capital entering the market, existing liquidity is merely rotating, leading to stagnation rather than expansion and preventing the market from absorbing excess supply.

The setup closely resembles a prior period when Bitcoin traded above $100,000, when a similar liquidity shortfall was ultimately resolved through a sustained price decline rather than renewed upside.

Without an influx of new liquidity, CryptoQuant warns that the most likely outcomes are prolonged consolidation or short-lived relief rallies that lack structural support and risk turning into "dead-cat bounces."

Also Read: Bitcoin, Ethereum, Solana To Hit All-Time Highs In 2026, Bitwise Predicts

Why It Matters: Coin Bureau CEO and co-founder Nic Puckrin said Bitcoin isn't moving because supply currently outweighs demand.

In 2025, the amount of older, long-held Bitcoin being moved or sold has hit record levels, increasing available supply.

At the same time, OG holders continue to cash out while buyer demand remains fragmented, capping sustained upside.

In contrast, crypto trader Niels noted Ethereum's exchange supply has fallen to its lowest level since 2016.

With less ETH available for immediate selling, short-term sell pressure has eased, making the market more sensitive to demand shocks where even modest inflows could drive outsized moves.

Price Action: Trader Michael van de Poppe says a decisive BTC break above $88,000 could flip momentum and support ETH, which has been structurally favoured since April 2025.

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