LIVE
đ„đ±A major supply shock is looming for Bitcoin as demand for BTC is at its peak
Recently, #Bitcoin reached an all-time high of just over $ 73 thousand, marking a new 2024 trend in the current market cycle. Although the price of the cryptocurrency has fallen to about 66 thousand dollars at the moment, the hot bull run and the expectation of further rises in the near future are still causing ripple effects in the market.
One of the recent effects of this trend has manifested itself in the form of increased buying pressure among investors. Dec. Big banks are now showing more interest in buying #BTC than ever before. The problem is that they can't find enough money to buy.
Lack of Supply in Stock Markets
Exchanges are perhaps the most popular places where investors buy and sell their coins quickly, as well as trade and convert them into other cryptocurrencies. In this case, the big banks are expected to go there and withdraw as much money as they want. Exchanges that offer P2P facilities are perfect for this purpose.
However, there are not enough Bitcoins that can be bought on exchanges, we can also call it a supply shortage. This does not mean that there are no Bitcoin owners left on the exchanges. It may be that the owners do not want to sell despite the current high prices. This forced banks to contact Bitcoin miners directly, buying directly from them. However, there have been some cases where miners also did not want to sell.
How Does This Affect the Bitcoin Market?
It is a common expectation that a decrease in supply will lead to an increase in demand and affect the price. Continued supply shortages could cause a "supply shock," which could push up prices as banks and other investors clamour to fill their bags.
Another aspect that can significantly contribute to this situation is the upcoming Bitcoin halving event, which will reduce the supply by half.
