Max Keiser, a key advisor to El Salvador's President Nayib Bukele and a cryptocurrency supporter, forecasts an imminent Bitcoin supply shock. His predictions are based on the substantial number of Bitcoins already mined and the increasing demand.
Reasons for Bitcoin Supply Shock Prediction
Keiser draws attention to the capped total of 21 million Bitcoins established by Satoshi Nakamoto's protocol. With nearly 20 million already mined, this increases concern within the Bitcoin community.
Impact of ETF Approvals on Demand
Samson Mow, CEO of JAN3, supports the supply shock idea, pointing to potential approval of Bitcoin ETFs by early 2024. He notes that funds like BlackRock's iShares IBIT have already siphoned off significant amounts of Bitcoin, limiting exchange liquidity.
Impact of Institutional Investments
Institutional investments also play a crucial role in this scenario. Companies like Michael Saylor's firm are actively holding Bitcoin reserves, while others like Metaplanet and ProCap BTC continue acquiring it. These strategies, alongside ETF inflows, reinforce Keiser's predictions of a supply shock.
The prospect of a Bitcoin supply shock underscores the intricate dynamics between supply constraints and surging demand, driven by institutional interest and pivotal market mechanisms like block reward halving. Observers will be keenly watching how these elements unfold in shaping Bitcoin's future trajectory.
