Institutional Demand Meets Shrinking Bitcoin Supply

Digital asset banking group Sygnum warns Bitcoin's current supply dynamics could create more dramatic price movements than past cycles. Research head Katalin Tischhauser reveals institutional capital flooding into BTC markets now faces 【70% less】 liquid supply compared to 2021, creating perfect conditions for explosive price growth.

The $30 Multiplier Effect

——Every dollar entering Bitcoin could generate $20-30 in market value—— Tischhauser explains, citing post-ETF launch patterns. This demand amplification stems from 【3.2 million】 BTC being permanently locked in long-term holdings, while new acquisition vehicles like Strategy and Twenty One Capital further reduce circulating supply.

Structural Bullish Catalysts Converge

Three critical factors reinforce Sygnum's bullish outlook: • Regulatory progress across major markets • Macroeconomic instability driving safe-haven demand • Bitcoin's hardening reputation as digital gold

Notably, U.S. spot Bitcoin ETFs have recorded just 【4 days】 of net outflows since mid-April, contradicting typical post-halving profit-taking behavior.

Market Pause Before Next Rally

Derive founder Nick Forster observes the current consolidation phase allows markets to digest March's 【48%】 price surge. ——This healthy pause builds energy for the next leg up—— he notes, with some analysts predicting targets between $200,000-$300,000.

Interestingly, the supply shock thesis gains credence from on-chain data showing 【83%】 of Bitcoin hasn't moved in over 6 months. As institutional adoption accelerates through regulated channels, available supply continues shrinking while demand mechanisms grow more sophisticated.

The Deflationary Advantage

Bitcoin's programmed scarcity becomes increasingly valuable amid global monetary expansion. Tischhauser emphasizes its appeal as a ——non-correlated, deflationary hedge—— grows as traditional markets face mounting pressures, potentially triggering the supply shock within Q3 2024.