A Bitcoin supply shock refers to a decrease in the amount of BTC available for sale in the market.
The cryptocurrency analyst and trader, Willy Woo considered that the third great supply shock of Bitcoin (BTC) has begun. The two previous shocks preceded strong upward trends in the price.
As the Criptonoticias portal explains, A Bitcoin supply shock refers to a decrease in the amount of BTC available for sale in the market. This can be caused by several factors, such as more active accumulation by institutional investors or the reluctance of hodlers to sell their holdings.
Bitcoin has a fixed total supply of 21 million BTC units, making it a scarce asset that cannot be issued unlimitedly. A supply shock therefore intensifies this shortagesince it reflects a reduction in the circulating quantity of the currency for sale.
According to Woo, Companies are copying MicroStrategy’s strategythe software company famous for making recurring purchases of bitcoin as an investment. With 439,000 BTC in its reserves, this company, which entered the Nasdaq 100 list this week, has the most holdings in the currency in the world.
Projections for Bitcoin in 2025, amid support from Donald Trump’s Government
Added to this is that nation states can begin to secretly accumulate Bitcoin, given the possibility that the United States will do so. Donald Trump, the US president-elect, has stated that he wants to turn seized Bitcoin holdings into a strategic government reserve asset.
There is also a bill standing in the economic power to acquire one million units of BTC. This has led to proposals to buy Bitcoin in other countries.
Currently the price of Bitcoin is around US$100,000, after reaching a ceiling of US$108,000. With the possible demand and supply shock, Woo anticipates higher prices for Bitcoin, as a phenomenon similar to what was seen in 2012 and 2020. Meanwhile, Projections indicate that in 2025 Bitcoin will reach the record of the current cycle and will be between US$140,000 and US$250,000.
Source: Ambito
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