Expect A Bitcoin Scarcity Crisis In 6 Months, BTC To $100,000?
12 März 2024 - 5:00PM
NEWSBTC
Ki Young Ju, the founder of CryptoQuant, a crypto analytics
platform, predicts a severe Bitcoin “sell-side liquidity
crisis” in the next six months. In this event, the founder thinks
that not only will prices erupt to new levels, surpassing
expectations, but the crisis will likely lead to a market
disruption. Bitcoin Records New All-Time Highs Bitcoin is trading
at around new all-time highs following sharp price gains on March
11. The coin roared to print new all-time highs of $72,800 before
cooling off to spot levels. Even though the upside momentum has
waned as prices move horizontally when writing, the uptrend
remains. Accordingly, more traders expect BTC to ease above
yesterday’s highs as bulls target seven digits at $100,000. If
bulls break above this psychological number, technical and
fundamental analysts say it will be a crucial inflection point for
Bitcoin. Related Reading: Crypto Institutional Investors Are
Frontrunning Retail As Inflows Reach Record Highs The founder
expects Bitcoin prices to explode in the next six months primarily
because of two factors. The first, Ju notes, is the massive influx
of demand from institutions via spot Bitcoin exchange-traded funds
(ETFs). So far, analysts have linked the current upswing in Bitcoin
to institutional demand. Last week, Ju observed a net inflow of
over 30,000 BTC. This means that institutions are taking away more
coins from circulation at an unprecedented level, contributing to
scarcity. Institutions and wealthy individuals can gain exposure to
BTC through spot ETFs without necessarily owning it directly.
Beyond this, the concern lies in the limited number of coins held
across centralized exchanges and known entities, especially miners.
The founder estimates that exchanges and miners own roughly 3
million BTC. Ju explains in the post that entities in the United
States hold 1.5 million BTC. BTC Scarcity Crisis Expected The
founder notes that rising demand from spot ETFs and a constrained
supply will create a “sell-side liquidity crisis” within six
months. This scenario could lead to a situation where there aren’t
enough sellers to meet the high buyer demand, further lifting
prices to fresh levels. Related Reading: Cardano (ADA) Price Alert:
Analyst Predicts 60% Rally In Next 7 Days The Bitcoin network will
slash miner rewards by half in April from the current 6.125 BTC.
Because of this, BTC’s emissions will drop, meaning only small
amounts of coins will be released into circulation, further
worsening the situation. As such, if the current level of demand
remains and institutions continue to double down, the expected
scarcity crisis may likely cause a major disruption in the market,
benefiting coin holders. Feature image from DALLE, chart from
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