Blockstream CEO perceives that a time will come when the BTC halving supply shock effect will finally be felt.
Adam Back, Blockstream CEO just took to the X app to analyze the current Bitcoin (BTC) market outlook, highlighting the role that sellers are playing in keeping the price bound.
Speaking about those dragging the prices of assets down, Back believes strongly that at some point, the “bears” would get exhausted and run out of coins to sell. He makes this statement on the premise of Bitcoin’s lack of enthusiasm, particularly expressed in its current mildly bearish market value.
BTC Refuses a New Price Breakout
Bitcoin, the leading cryptocurrency, started the month of June on uncertainty even after hitting a new all-time high (ATH) in mid-March. The mild drops in BTC price were seen around the time when the hype surrounding spot Bitcoin ETFs equally hit rock bottom with high outflows a few weeks back.
Based on the latest data, the flagship digital currency is now trading at $68,870.91 with a 0.21% drop in value within the last 24 hours. This has been the trend with the coin for the last few weeks. While the coin portrays a strong resilience, it has failed to break through a new price level. To a large extent, this sentiment is believed to be linked to the activities of bears, thus prompting Back’s statement.
In the last few months, the Bitcoin ecosystem has registered some key events that were expected to push its price to unprecedented levels including the launch of spot Bitcoin ETF. The trading of these offerings comes following approval from the United States Securities and Exchange Commission (SEC). However, not much has happened to the coin after it slowed its growth post-ATH hit.
Bitcoin Halving-Fueled Supply Shock to Weigh in on Price Soon
Bitcoin halving event, the once-every-four-years that cuts down the supply of the crypto and also cut mining rewards in half, was recorded in April. It was expected that the supply shock would influence a reasonable surge in Bitcoin price. SkyBridge’s founder and top crypto industry player Anthony Scaramucci was confident that BTC could surpass $170,000 a year after the halving.
So far, the market has not felt the impact of the event considering the current Bitcoin price level.
However, Blockstream CEO perceives that a time will come when the halving supply shock effect will finally be felt. He speculates that it “will be felt in full force, plus some reflexivity, momentum tradfi brokers & advisors calling their clients, and FOMO buys from those ‘waiting for a dip.’”
When this eventually happens, he sees sellers getting “exhausted” and out of the market, paving the way for a mega Bitcoin recovery.
Veteran crypto trader Peter Brandt also believes the recent April 2024 Bitcoin halving could be the catalyst for another major price rally. His target for the price of Bitcoin is between $130,000 and $150,000 by 2025. According to Blockstream CEO’s projection, ETF demand would equally increase in the coming months.
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