Bitcoin and Predictions of an Upcoming Supply Shock
Bitcoin has become the focal point again as Max Keiser, a longtime cryptocurrency supporter and advisor to El Salvador's President, Nayib Bukele, predicts an impending supply shock. This phenomenon could push prices to astronomical levels in the near future. Along with Samson Mow, CEO of JAN3 and also a Bitcoin maximalist, both warn about the shortage of Bitcoin supply due to surging demand.
Why is a Supply Shock Approaching?
Keiser shared on social media that: “I have calculated. A Bitcoin supply shock is inevitable,” along with a rocket emoji suggesting the price will soar. A supply shock occurs when the available Bitcoin does not meet the market demand, driving the price up uncontrollably.
With a fixed total supply of 21 million coins, nearly 20 million Bitcoin have already been mined. Every 4 years, a predetermined deflationary event known as halving will reduce the reward for newly created blocks. The most recent halving in April 2024 reduced the reward to 3.125 BTC, slowing the rate of new coins entering circulation. The next halving in 2028 will further tighten supply, which is a key factor in Keiser's predictions.
Bitcoin Demand Surges Beyond Expectations
Samson Mow once predicted Bitcoin could reach 1 million USD, and he was the first to warn about the supply shock in January 2024, right after spot Bitcoin ETFs were approved in the United States. He also emphasized the possibility of a demand shock. As institutions and individual investors rush to buy, demand could far exceed the limited supply. This dual combination of realized and latent effects could cause Bitcoin's price to explode.
Large Corporations Rapidly Buying Bitcoin
The pace of institutional adoption shows no signs of slowing down. Michael Saylor's MicroStrategy has raised capital through convertible bonds and currently holds 592,345 BTC, becoming the second-largest Bitcoin holder after BlackRock.
In addition, companies like Metaplanet (Japan) and the ProCap BTC fund founded by investor Anthony Pompliano have also started to accumulate Bitcoin for their treasury. Adam Livingston, a Bitcoin advocate, noted that the supply is tightening as institutions and ETFs ramp up their purchases, while retail investors are selling.
How Will Bitcoin's Future Unfold?
With supply tightening and large capital flows from institutional investors, both Keiser and Mow believe that a breakthrough may be approaching. The combination of limited supply, global interest, and recognition – exemplified by El Salvador – creates an extremely favorable scenario.
Although the future cannot be predicted completely, fundamental factors are converging strongly, signaling a major turning point. For investors, this may be a rare moment to seize opportunities in the volatile cryptocurrency market.
Source: https://tintucbitcoin.com/bitcoin-sap-can-cung-bien-gia-manh/
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