Recent forecasts by Max Keiser, a notable advocate for Bitcoin and advisor to El Salvador’s President Nayib Bukele, hint at a potential price surge for the cryptocurrency due to supply shortages. Keiser shares his views with fellow Bitcoin supporter Samson Mow.
Why a Supply Shock Could Be Coming
Keiser recently tweeted, "I’ve done the math. A Bitcoin supply shock is imminent," adding a rocket emoji to suggest prices could skyrocket. A supply shock occurs when there isn’t enough of an item, like Bitcoin, to meet demand, driving prices higher.
This warning is based on Bitcoin’s fixed supply limit of 21 million coins, with nearly 20 million already mined. Every four years, a pre-programmed event called a halving reduces the number of new Bitcoins generated.
Demand Is Heating Up Fast
Samson Mow, who has long maintained that Bitcoin could eventually reach $1 million, first predicted this supply shock earlier in January 2024, right after U.S. regulators approved spot Bitcoin ETFs.
He also warned about a potential demand shock. With institutions and investors rapidly buying up Bitcoin, demand could soon outpace supply. This dual shock – limited new coins and rising demand – could send prices soaring.
Big Corporations Are Buying Bitcoin Fast
Institutional adoption isn’t slowing down. Michael Saylor’s MicroStrategy has raised funds through convertible debt and now holds 592,345 BTC, making it the second-largest holder after BlackRock.
Other firms are joining the trend. Metaplanet, based in Japan, and the newly launched ProCap BTC, founded by crypto investor Anthony Pompliano, have also started accumulating Bitcoin for their treasuries.
Bitcoin advocate Adam Livingston recently commented that supply is shrinking as major companies and ETFs quickly buy in, while everyday holders are selling. This kind of imbalance could trigger a major shift in the market.
With new supply slowing and large-scale buyers continuing to accumulate, Keiser and Mow believe a breakout could be near. The combination of fixed supply, growing institutional interest, and global adoption by countries like El Salvador makes for a powerful setup.
