Will the supply-demand ratio cause Bitcoin to explode?

The latest Bitcoin news has quickly drawn attention from investors, as forecasts predict a major supply shortage is about to occur.

According to analyses, the buying volume from institutions and businesses this year is far exceeding the Bitcoin production rate of miners, leading to a serious supply shortage. This is a signal that BTC prices are preparing for a strong growth surge in the near future. From the perspective of supply and demand, the increasing demand may push Bitcoin prices higher if supply does not soon reach a state of balance.

However, the reality shows that Bitcoin has not yet been able to establish a new peak since the price shock on October 10. In this context, experts have identified important resistance and support levels that investors need to pay special attention to.

Financial institutions dominate the supply from Bitcoin miners

According to recent updates, institutional investors continue to strongly drive the demand for Bitcoin, leading to the risk of supply shortages in the market.

The latest data shows that, just this year, ETF funds and public companies have purchased up to 975,000 BTC, far exceeding the 136,000 BTC created by miners. This discrepancy has caused a serious imbalance in supply and demand, setting the stage for a potential price increase of Bitcoin.

According to data from BiTBO, ETF issuers currently hold 1,545,128 BTC, while countries hold (517.296 BTC), public companies hold (983.189 BTC), and private companies hold (26.337 BTC). In contrast, Bitcoin mining companies and DeFi businesses only hold 120,114 BTC and 267,236 BTC, respectively.

This development shows the increasing interest from organizations in Bitcoin, notably Strategy, which currently holds about 3% of the total global supply. As the supply of BTC on exchanges continues to dwindle, experts predict that the market will witness strong price fluctuations due to the limited circulation of funds.

Bitcoin price outlook in the near future

Although signals of supply scarcity are emerging, the current market trend makes it difficult for BTC prices to break out strongly. At the time of the update, the price of Bitcoin only increased slightly by 0.5% and fluctuated around the level of 110,000 USD.

Analysts have pointed out the important resistance levels that Bitcoin needs to overcome to maintain its growth momentum. According to expert Michael van de Poppe on the X platform, the BTC price needs to break through the 112,000 USD mark to open up bullish prospects in the near future.

In addition, expert Ali Martinez believes that the largest resistance level for Bitcoin currently stands at 120,880 USD. Meanwhile, two important support zones are identified at 98,070 USD and 75,250 USD.

These developments have raised concerns among many investors about the possibility of BTC prices dropping to the 80,000 USD range, especially in the context of a market that remains quite unstable. However, based on historical trends, Bitcoin is still expected to enter a new growth cycle.

In addition, information about the scarcity of supply is also a positive supporting factor for the price of Bitcoin. However, experts recommend that investors should thoroughly research the fundamental factors of the market before deciding to invest in this asset.

Mr. Teacher