Bitcoin has seen a notable increase of 10% this week, pushing its price to an all-time high (ATH). This upward momentum indicates positive expectations for the cryptocurrency, as investors continue to show strong demand for it.
Bitcoin (BTC) is once again on track to set new price records, driven by its increasing popularity and investor confidence.
Bitcoin investors are extremely optimistic
Short-term investors (STH) are showing strong optimism towards Bitcoin, as evidenced by their increasing accumulation behavior. Over the past month, the 'shrimp' group has added over 19,300 Bitcoins to their holdings.
Meanwhile, Bitcoin miners have issued only 13,400 Bitcoins, indicating a significant gap between demand and supply.
The continued net absorption of STH, along with declining new BTC issuances, indicates an adjustment on the supply side. This adjustment is a critical factor in the price movement of the leading cryptocurrency.
Long-term bondholders are also displaying strong accumulation behavior, which contributes to the supply adjustment.
LTH platforms are currently absorbing amounts of Bitcoin that exceed what miners can issue, creating an environment where demand for Bitcoin outstrips the available supply. This consistent behavior across all major investor groups indicates that Bitcoin may soon face a supply shock.
This scenario is a historically positive indicator for Bitcoin, as it suggests a significant withdrawal of circulating supply from exchanges, reducing market liquidity. The current trend of net absorption may lead to ongoing upward pressure on Bitcoin's price.
LTH Bitcoin Width Change
BTC price may form a new high
Bitcoin's price rose by 9.7% over the past week, trading at $118,712, just below its all-time high of $118,869. With strong accumulation trends and shrinking supply, Bitcoin is well-positioned to continue its upward rise in the coming days.
Increased investor confidence and market momentum suggest that BTC could easily surpass its all-time high.
Given the ongoing demand and limited supply, the cryptocurrency is expected to reach $120,000. This will serve as a crucial upward catalyst for further inflows into the market.
If Bitcoin manages to secure this level, it will establish a new all-time high and pave the way for further significant gains.
Although the chances of a decline are relatively low due to strong accumulation by investors, Bitcoin may face challenges when stock markets open on Monday.
The potential impact of the 30% tariffs recently imposed by Donald Trump on the European Union may lead to short-term volatility. If Bitcoin is negatively affected by market conditions, it is likely to drop to $115,000.