A potential supply shock could push the Bitcoin price to skyrocket in the near future.
Analyst Willy Woo recently predicted a potential supply shock for Bitcoin.
Specifically, some data shows that since February, long-term Bitcoin investors have been trying to accumulate from short-term investors.
According to Willy, the supply of Bitcoin in the near term will be as low as in the fourth quarter of 2020. At that time, the Bitcoin price started an uptrend and went from around $11,000 to a new peak at $64,800 in April of this year.
“Experts are debating whether BTC is an inflation hedge in the post-Covid-19 world, as data indicates long-term investors are accumulating BTC rapidly. The price fell and quickly exited the strong correlation with the stock,” Woo said.
Data from analytics platform Glassnode shows that the Bitcoin network is adding 32,000 users per day.
This is a high not seen since January 2018, when the network took in 40,000 users a day, before the bearish cycle began and lasted a year afterward.
However, Woo notes this time things are different because “new users are taking advantage of the current correction to ‘bottom’, this is the rate [người dùng mới] the highest recorded this year.”
In March, this analyst predicted that the Bitcoin price could reach $400,000 by the end of the year. But by mid-June, he lowered his prediction to $200,000.
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