According to a leading cryptocurrency analyst, the Bitcoin (CRYPTO:BTC) is poised to experience a price surge when demand begins to outstrip supply.
What happened
“When supply exceeds demand, the price of the asset tends to fall. Conversely, when demand exceeds supply, the price usually rises. These same principles apply to Bitcoin,” he wrote Thursday on X l cryptocurrency analyst Ali Martinez.
Recent market dynamics, including the increased supply of BTC after reaching an all-time high of over $73,700 in March, led to a corrective phase that saw the price of Bitcoin fall below $57,000. This drop caused Bitcoin to fall below its “Short-Term Holder Realized Price,” sparking market fear as short-term holders are more likely to sell based on price volatility, the l ‘analyst.
“The price realized by short-term holders, currently at $60,500, served as an accumulation point despite investor concerns. In fact, long-term holders felt comfortable adding more than $70,000 BTC to their positions at these levels after making profits in March,” he added.
Martinez now predicts that demand for Bitcoin will soon exceed supply, pushing the value of Bitcoin higher. He pointed to the movement of more than 30,000 BTC into private wallets for long-term holding since early May as evidence of holders’ confidence in Bitcoin’s future value.
Because it is important
Cryptocurrencies like Bitcoin, Ethereum (CRYPTO:ETH), Dogecoin (CRYPTO:DOGE) e Shiba Inu (CRYPTO:SHIB) posted gains this week after increased institutional interest in spot Bitcoin ETFs, leading to an inflow of $1.3 billion over the past two weeks.
Keep reading
The next Bitcoin price target for bulls, according to “Bitcoin OG” Lluciano aka Lucky, is $69,000. Crypto researcher Alex Wacy asked if it is “fair to assume that the path to $80K is now open?”
Bitcoin price
Bitcoin is currently trading at $66,860, up 1.94% over the past 24 hours, according to Benzinga Pro.
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