- Bitcoin price touched $116,689 on September 15 before dropping slightly; during this time, Binance data showed that the Bitcoin Scarcity Index rose for the first time since June 2025.
- A rise in the Scarcity Index often signals large investor accumulation, but if it quickly falls after rising, it could mean speculative trading or liquidations that could trigger a correction.
Yesterday, the 15th of September 2025, the Bitcoin price touched $116,689 before it dropped a little based on data recorded as of the time of writing. It has also been recorded that despite the fact that Bitcoin price increased within the last one day, there’s a high possibility that in the coming weeks Bitcoin price will be faced with volatility.
Additionally, there’s also been new data from Binance regarding Bitcoin’s limited supply. According to the data, Bitcoin’s scarcity index has seen its first rise since June 2025.
What is the Bitcoin Scarcity Index, and what does it indicate?
At the very basics, the Bitcoin Scarcity Index shows how much Bitcoin is available on exchanges compared to how many people want to buy it. So basically when Bitcoin or any other token supply gets smaller but its demand stays high, the index rises.
Giving a simple example, if Binance has about 100,000 BTC ready for trading and the big whales and institutions withdraw about 30,000 BTC, leaving 70,000 BTC on the exchange. At that particular time, demand is greater than supply. This imbalance makes Bitcoin scarce on the exchange, causing the index to rise and, in most cases, pushing the price higher.
Also Read: Bitcoin Price Stable Above $116,000 With Growing Market Speculation
According to a CryptoQuant contributor, Arab Chain, this recent increase means either a large amount of BTC was withdrawn from Binance or there was a sharp drop in the number of sell orders. This shift also made the available supply of BTC on the exchange more limited. Most of the times when this happens, it is always traced to whales that hold significant amounts of Bitcoin.
Notably, if the index continues to show strength over several days, it could mark the start of a new accumulation phase for Bitcoin, and these could support the ongoing uptrend. On the other hand, if the index jumps quickly and then drops just as fast as it peaked, it could possibly mean there is speculative trading or liquidations. That pattern would many times lead to calmer price action or a correction.
Months ago, the index even reached fresh highs, climbing as far as +6 before pulling back toward neutral and sometimes even negative levels.
Also Read: Bitcoin Sell-Side Risk Ratio Drops Below 0.1%: Is the Market Approaching a Bottom?
