Those who invest in cryptocurrency consider Bitcoin as an alternative to gold as a store of value. The reason for this is its limited supply of 21 million tokens and ever-increasing demand. This ensures that the price of currency continues to increase in the long run. In fact, even in this bull run, you might have heard that a lot of Bitcoin is being taken off exchanges to cold wallets. This means that a lot of Bitcoin is illiquid, and the market doesn’t actually have enough for everyone. And this is the Bitcoin supply shock that could trigger the beginning of the next phase of the bull run.
The bull run!
As of now, Bitcoin is highly manipulated. The way it is moving is very unrealistic for any asset. 10-day green streak, heck that doesn’t even happen if there is great news, let alone for such a volatile currency. But all this is short term; if you think about the same in the long run, then the bull run has a very high chance of resuming. Comparing to the 2013 and 2017 bull run, it is obvious that BTC’s current ATH is not at the top. And it could very soon resume its journey to the next phase of the run.
The most important aspect of this will be the supply shock. As of now, the supply is low, but so is the demand due to the fear in the market. But once that changes we will see such a high demand that the prices will rise very fast. Even the mining markets are recovering, and the hash rates are also increasing as miners are settling outside China.
What are your thoughts on the Bitcoin supply shock that could trigger the next bull run? And do you think this bull run ATH is in, or we are going higher? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also, Read: Bitcoin’s 10-day green streak finally comes to an end!