BlockBeats News, on May 20, according to CoinDesk, although the price of Bitcoin hovers slightly below the historical high from January of this year, digital asset ETF issuer 21Shares believes there is greater upside potential for Bitcoin this year.
21Shares research strategist Matt Mena wrote in a report released on Monday: "Bitcoin is on the verge of a breakout." He believes that the current Bitcoin rally is not driven by retail frenzy, but rather by multiple structural forces working together, including institutional fund inflows, historic supply tightness, and improvements in the macroeconomic environment, all of which suggest that Bitcoin will follow a more sustained and mature path towards new historical highs.
The amount of Bitcoin continuously absorbed by spot Bitcoin ETFs exceeds the daily mining output, further tightening the supply. At the same time, major institutions, companies like Strategy, and newcomers like Twenty One Capital are also continuously accumulating Bitcoin, and even some countries are beginning to explore establishing strategic reserves.
Mena predicts that the combined effects of these factors could drive Bitcoin to $138,500 this year.
