Like the Bitcoin halving closer, there is so much optimism about what could happen to Bitcoin’s price in the aftermath of this event. This optimism is further reinforced by a recent development that shows how The question of Bitcoin far exceeds his offering, which is the flagship crypto token as high as $237,000.
Demand for Bitcoin significantly exceeds demand
Crypto analyst Willy Woo listed in an X (formerly Twitter) after that the Bitcoin network receives an average of $607 million in new investor demand every day. On the other hand, this demand would be met by a supply of only $46 million per day in terms of Bitcoin mined. This development is more important considering that the Halving is fast approaching.
This is when Bitcoin miners are rewards cut in halfThis acts as a deflationary measure and reduces the rate at which more BTC enters circulation. This also offers a bullish story, as the already insufficient supply will decrease further after the halving. Once that happens, Bitcoin is expected to become more valuable and more price increases are on the way.
Industry expert Anthony Pompliano also emphasized this phenomenon when he noted how institutional investors were gobbling up BTC almost 13x faster than its production rate. He added that the flagship crypto token would undoubtedly see a new all-time high (ATH) if this trend continues.
This institutional demand for BTC is mainly driven by the Spot Bitcoin ETFs, which were approved in January. Due to the impressive demand for these funds, fund issuers such as BlackRock have continued to accumulate a significant portion of BTC supply on a daily basis. Interestingly enough, these Bitcoin ETFs were reported to own 3.3% of Bitcoin’s circulating supply earlier this month.
Bitcoin’s Way to $237,000
In response to Willy Woo’s post, crypto analyst MacronautBTC made a “conservative” calculation of how Bitcoin’s price could rise to $237,000. Using a multiplier of 3x the dollar currently in the Bitcoin ecosystemthe analyst said Bitcoin could see an additional market cap of 4.38 trillion.
Then he added the 4.38 trillion Bitcoin’s current market capitalization of 1 trillion, which amounts to a market capitalization of 5.38 trillion. This potentially brings Bitcoin’s price to $273,000 (a year from now, according to MacronautBTC’s calculations).
The analyst also highlighted how this price level coincides with predictions from notable Bitcoin bulls. One of them is Tim Draper, who recently declared that BTC will reach $250,000 by 2025.
At the time of writing, Bitcoin is trading around $50,900, down almost 2% in the past 24 hours. facts from CoinMarketCap.
BTC price sits above $51,200 | Source: BTCUSD on Tradingview.com
Featured image from CNBC, chart from Tradingview.com
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