Katalin Tablehauser, Head of Research at Digital Asset Banking Group Sygnum told Cointelegraph, Bitcoin is now entering a period where supply will be impacted more than before.
“Large demand will have a strong multiplier effect, meaning every $1 of demand leading to, say, $20-30 additional market capitalization,” She said “We have already seen this multiplier effect after the launch of the Bitcoin spot ETFs or around the US elections.”
Tischhauser has cited Bitcoin’s limited supply (BTC( ) in relation to large institutional pools on the demand-side as a potential reason for an increase in BTC prices over the next few months.
“This liquid supply has been falling steadily over the past 1.5 years, not least because of the proliferation of Bitcoin acquisition vehicles such as Strategy, Twenty One Capital, and others,” Tischhauser said.
The analyst also cited structural factors that contributed to her bullish outlook for BTC. These include increased regulatory clarity and macroeconomic pressures as well as Bitcoin’s increasing appeal in the deflationary market.
Since April 16, bitcoin exchange-traded fund (ETFs), have only seen four days’ worth of withdrawals.
Related: Bitcoin price will reach $130K or even $1.5M, top bulls say
Bitcoin consolidation a ‘healthy pause’
Nick Forster of Derive told Cointelegraph.com that it is expected the asset to likely increase in value. see a “phase of consolidation,” He classified it as a “healthy pause.”
Pause will be allowed “the market time to digest recent gains and gear up for the next phase.” Analysts are calling for higher prices, such as $200,000 and $300,000.
Magazine: Danger signs for Bitcoin as retail abandons it to institutions — Sky Wee
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Source: cointelegraph.com
