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Bitwise: Bitcoin Will Be Bought from Willing Sellers
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According to Bitwise, if companies and governments want to acquire Bitcoin, they’ll largely have to buy it from individual holders.
This prediction paints an intriguing picture of what’s to come in the Bitcoin market. The balance between buyers and sellers could significantly shift.
Bitwise Predicts Bitcoin Supply Crunch as Institutional Demand Grows
Bitwise’s insight is based on the growing demand for Bitcoin, both from institutional investors and government bodies. Over the past few years, Bitcoin has transitioned from a niche asset to a mainstream investment. With large corporations and even countries looking to add it to their balance sheets.
However, the supply of Bitcoin is capped at 21 million. This creates a dynamic where there is a finite amount of this digital asset available for purchase. This scarcity could lead to a situation where institutions or governments looking to add Bitcoin to their portfolios will have to compete for the limited supply. This competition could drive up the price.
If companies and governments want to buy bitcoin, they’ll largely have to buy it from individuals who are willing to sell.
That market dynamic between buyers and sellers could get very interesting. pic.twitter.com/GL00n8L0op
— Bitwise (@BitwiseInvest) February 10, 2025
This market dynamic could get very interesting, as Bitwise suggests. The potential for increased demand from major buyers. They coupled with the fact that many Bitcoin holders may be reluctant to sell, could create a tug-of-war. This would result in a battle between buyers and sellers.
Bitcoin Market Dynamics: Institutional Demand vs. Reluctant Holders
On one hand, institutional buyers might be eager to buy up large quantities of Bitcoin. So, they see it as a hedge against inflation or as a store of value. On the other hand, long-term individual holders, who see Bitcoin as the future of money, might be less inclined to part with their coins unless the price reaches levels that are too tempting to resist.
Who’s Buying Bitcoin?
Institutional & Retail Demand Soars! pic.twitter.com/ir9umtET8U
— Edge21 (@Edge21BTC) January 31, 2025
What does this mean for the average investor? It could lead to higher volatility in the short term, as the market adjusts to shifting supply and demand. It also presents an opportunity for individuals to benefit from this demand. So, institutions and governments may be willing to pay a premium to secure BTC. For those holding onto their Bitcoin, the old saying “what goes up must come down” could ring true. For now, the market’s potential for growth looks promising.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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February 11, 2025 at 07:23AM
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