This is based on basic economic principles:

scarcity and supply-demand imbalance.

Why Can Bitcoin Rise Parabolically?

1. Limited Supply

- Bitcoin has a maximum supply of 21 million coins, and about 19.7 million are already in circulation (as of April 2024).

- Every 4 years, the block reward (mining reward) is reduced by 50% (Halving), slowing the growth of new supply.

2. High Demand

- If demand (from institutions, ETFs, countries, or retail investors) continues to increase while new supply decreases, prices can skyrocket.

- Example: After the 2020 Halving, Bitcoin rose from ~$9,000 to $69,000 (2021).

3. FOMO Effect (Fear of Missing Out)

- When prices start to rise quickly, more people/institutions want to buy before it's too late, reinforcing the increase.

What Can Trigger Parabolic Movements?

- Adoption by Institutions

(example: Bitcoin ETF like BlackRock)

- Global Policies (e.g., Fed interest rate cuts)

- Uncertainty (Bitcoin as a safe-haven asset)

- Effects (like what happened in 2024, reducing new supply)

Correction Risks

Although the long-term trend is bullish, parabolic movements are often followed by sharp corrections (example: 2017, 2021). Therefore, risk management is important.

If demand remains high and supply tightens, phase could happen again!