Bitcoin continues to show positive dynamics, with high demand and low supply according to recent research. Experts from 21Shares are confident in the cryptocurrency's continued growth.
Decreasing Supply on Markets
According to 21Shares analyst Matt Mena, the supply of Bitcoin on cryptocurrency exchanges and over-the-counter (OTC) markets has reached an all-time low, while demand for the cryptocurrency continues to rise. 'The structural imbalance between surging demand and a rapidly vanishing supply base makes a prolonged correction increasingly unlikely,' Mena noted.
Macroeconomic Risks for Bitcoin
Despite the positive forecasts, Mena warns against completely ruling out possible declines. 'It is certainly possible that Bitcoin consolidates, or even sees a pullback,' said the analyst, highlighting two macroeconomic risks that could affect the market. He mentioned that 'if Trump's proposed tariffs turn out to be more severe than markets currently anticipate, or if Powell signals that rate cuts are further off than expected, we could see risk assets broadly reprice lower, including Bitcoin.'
Future Prospects
Mena also pointed out that in the first half of this year, US-listed Bitcoin ETFs have absorbed a significant amount of BTC that will be mined. 'This doesn’t even include corporate treasury buyers, who continue to add quietly in the background,' he added. Forecasts suggest that a sustained price drawdown over the next six months is unlikely. Interestingly, Bitcoin is setting new all-time highs even during the historically weakest season of the year.
Thus, experts from 21Shares see positive trends in Bitcoin against the backdrop of historic supply decreases and rising demand, although macroeconomic factors remain a concern.
