Bitcoin is holding steady at $98,900, just below its $104,000 peak. Top crypto experts believe the coin has great potential as demand grows and supply shrinks.
Is Limited Supply and Institutional Interest Driving Bitcoin’s Demand?
The rising demand for Bitcoin is driven by its limited supply of 21 million coins amid growing institutional interest. With over 19.7 million already mined, only 1.3 million left, and millions lost, its scarcity is driving up its value. Meanwhile, MicroStrategy continues to lead institutional Bitcoin adoption, holding 402,100 BTC valued at over $40 billion. With a 38.7% return this quarter and 63.3% year-to-date, its strategy reflects growing confidence in the crypto’s long-term potential. Recently, the company added 15,400 coins, funded by a $1.5 billion stock sale.
Similarly, Marathon Digital has added 11,000 BTC for $1.1 billion, increasing its total to 40,000 BTC. This, along with other corporate investors like Riot Platforms, has contributed to a reduction in BTC supply on exchanges, which has fallen from 2.7 million in January to 2.24 million in December. To further intensify the crunch, mining Bitcoin has become more difficult following the recent halving event, slowing the creation of new coins.
Bitcoin ETFs See Continued Inflows
The shrinking supply and rising institutional demand, boosted by Bitcoin’s ETF inflows, have pushed total assets under management to $107 billion. U.S. ETFs experienced their tenth consecutive day of inflows, with $223.03 million pouring into the funds as the coin rose back above $100,000. BTC surged past $102,000, fueled by hopes of an interest rate cut after U.S. inflation data.
It’s now trading at $100,769, up 3.3% in the past 24 hours. This brings the total net inflows across 12 of its ETFs to $34.58 billion. This brings the total net inflows across 12 of its ETFs to $34.58 billion Cryptocurrency analyst Ali Martinez notes, “The ongoing institutional adoption of Bitcoin is transformative. As ETFs and other institutional products continue to draw capital, BTC’s value proposition as digital gold becomes clearer.”
Experts Optimistic With Bold Predictions:
Analysts at Bitwise are optimistic, predicting Bitcoin could reach $200,000 by 2025. Expert Martinez is even more bullish, expecting it could rise to $275,000, a 177% increase. He bases this on a cup-and-handle pattern and advises buying during dips while avoiding overleveraging. This optimism is driven by rising ETF inflows and broader adoption, with some experts even speculating that BTC could challenge or surpass gold’s $18 trillion market cap by 2029.
Additionally, its weekly chart shows a strong bullish breakout, having passed the key resistance of $69,210 and completed the cup-and-handle pattern. It is currently trading well above its 50-week and 200-week moving averages, which formed a “golden cross” earlier. As momentum indicators like the ADX continue to rise, analysts target $122,258 as the next key resistance, indicating Bitcoin may be headed for new highs.
What Risk Could BTC Face Ahead?
Although the long-term outlook for the crypto is positive, analysts warn that volatility is still a risk. “Investors should expect price swings,” says Martinez. With its limited supply, increasing demand, and strong momentum, BTC could reach $275,000 in the future; however, risk management is crucial.
Conclusion
Bitcoin’s current price, near $100,000, is a key point for the cryptocurrency. With analysts predicting growth and institutional adoption rising, reaching $275,000 seems possible if market conditions stay strong. Whether BTC hits these targets will depend on ongoing demand, economic stability, and the crypto market’s evolution.
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