- Demand for BTC could set a new high if supply were to decline after the halving.
- One analyst predicted that Bitcoin could reach a staggering $700,000.
Bitcoin [BTC] reached a market cap of $1 trillion for the first time since December 2021, and on the same day the number of coins on exchanges reached the lowest in six years. AMBCrypto confirmed this after considering what happened on the market, which was green all week.
The market capitalization reaches $1 trillion, the exchange rate falls
At the moment of writing, CoinMarketCap Data showed that Bitcoin’s market cap was $1.022 trillion. This was out of a possible $1.94 trillion available to the broader market. Such market share suggests that the coin is still firmly clinging to its dominance.
In terms of exchange data, we considered evaluating on-chain data from Glassnode. According to the analysis, the total balance of BTC on exchanges amounted to 2.41 million in August 2018.
It was notable to mention that the price of BTC rose from $6,154 to $10,810 in less than a year after the exchange rate was so low.
But at the time of writing, the balance had dropped to 2.37 BTC.
Source: Glassnode
The decline in the overall exchange rate balance suggests that many market participants are willing to HODL. Should the number remain lower, a new All-Time High (ATH) may be in the making.
In addition to the exchange data, other metrics supported a Bitcoin high in the coming months. One of these is the halving of Bitcoin. Bitcoin’s halving takes place every four eyes and this year will be the fourth. The idea behind the halving was to combat inflation by maintaining scarcity.
Therefore, BTC reached a new ATH several months or years after each halving as demand increases after the supply drop. This time may be no different. But whether the price would reach six or seven figures as discussed in some corners remains a mystery to unravel.
Another factor that could drive Bitcoin’s price higher is the involvement of major institutions. AMBCrypto has reported on several occasions how demand for Bitcoin ETFs appears to be growing. In a similar vein, selloffs led by asset manager Grayscale have waned.
Signs will bring wonders for BTC
On this topic and the impact on the price action, Cameron Winklevoss made some comments. According to Winklevoss, co-founder of Gemini, demand for BTC was 10x greater than what would normally be due to the ETFs. He also said that after the halving, demand could increase 20 times.
Bitcoin ETFs remove 10x more bitcoin from the market than are issued daily. If these inflows continue during the halving, Bitcoin ETFs will fetch 20x more from the market than the daily coin. I like where this is going.
— Cameron Winklevoss (@cameron) February 14, 2024
Should this be the case, BTC could rise much higher, and surpassing the previous ATH value of $69,000 could become a piece of cake. Meanwhile, Adam Back, cryptographer and founder of Blockstream, has predicted his own BTC price.
Read Bitcoin’s [BTC] Price forecast 2024-2025
In his post on If this happens, the price of one Bitcoin would be around $700,000, which Back said was not impossible.
so maybe #bitcoin gold changes faster than the ~$700k/BTC would imply at a market cap of ~$13.5 trillion, if #bitcoin gets gold flowing out and pulls gold down to meet in the middle. all good, just a new source of influx.
— Adam Back (@adam3us) February 14, 2024
