Max Keiser, a noted Bitcoin supporter and advisor to the president of El Salvador, has made a forecast regarding a Bitcoin supply shock, joining other major proponents of the cryptocurrency.
Max Keiser's Forecast
Earlier today, Keiser announced on his X account that a Bitcoin supply shock is imminent. He stated, "I’ve done the math. A Bitcoin supply shock is imminent." Keiser added a rocket emoji to his post, hinting at an expected surge in BTC price.
Mechanism of Bitcoin Halving
Keiser's and Mow's forecasts are based on a capped supply of Bitcoin, which is limited to 21 million coins, of which nearly 20 million have been mined. Every four years, Bitcoin undergoes a programmed event called halving, which cuts the reward for miners in half. Last year, the fourth halving occurred, with the current block reward set at 3.125 BTC.
Supply Shock vs. Demand Shock for Bitcoin
Samson Mow also predicts a collision between Bitcoin supply and demand in the near future. He mentioned that the supply shock would arise from halving while demand would increase due to ETFs rapidly absorbing Bitcoin. BlackRock has become a leader in Bitcoin accumulation among ETFs, while other companies like Metaplanet and ProCap BTC are also creating Bitcoin treasury.
Forecasts regarding Bitcoin supply shocks highlight important aspects of its market behavior in light of limited supply and increasing demand, potentially leading to significant changes in the cryptocurrency landscape.
