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Bitcoin (BTC) Price: Could Hit $116K as Perfect Storm Brews
The price of Bitcoin (BTC) could be on the cusp of a massive upswing, with predictions suggesting it may reach an unprecedented $116K by the end of July. According to a recent analysis from Trader Edge, the current market conditions are primed for a potential supply squeeze, which would drive the cost basis per Bitcoin upwards.
The data indicates that exchange balances have hit a 7-year low, plummeting to just 14% of total circulating supply. This drastic decline in availability has led many experts to speculate about an impending supply squeeze, potentially sending prices soaring. In fact, it has been reported that these imbalanced dynamics could drive the price upwards by as much as $116K.
Furthermore, institutional demand through ETFs is surging, with a staggering $9.91 billion being deposited into spot Bitcoin ETFs since May 1. This influx of capital, combined with the scarcity of available liquidity, may propel the cryptocurrency to previously unimaginable heights.
Recent price action has shown that Bitcoin has been recovering from liquidation events near $104,984, with bulls triggering a whopping $40 million in short liquidations and propelling the price back towards $107,000. While still within its consolidation range, momentum is building from multiple macro catalysts, setting the stage for a potentially sustainable price movement.
It’s essential to note that previous price action has demonstrated derivatives-driven moves being heavily dependent on spot participation, resulting in minimal and unsustainable price gains. However, the shift towards spot-based demand could mark a significant turning point for the cryptocurrency.
The current dynamics suggest that Bitcoin’s price may rise significantly as its supply continues to decrease at an unprecedented rate.
Source: coincentral.com
