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Adam Back, Blockstream founder, has made a bold statement about Bitcoin (BTC) and its potential to sustain its growth on the broader cryptocurrency market. In an update shared with the community, Back highlighted the ongoing buying pressure from exchange-traded funds (ETFs) and its impact on the coin.
Bitcoin ETF demand outpacing sell pressure
Back emphasized that the demand for Bitcoin ETFs outstrips the selling pressure. He said the strong supply-demand dynamics would soon create buy pressure, positively impacting prices.
Yuri MolchanThe Blockstream founder insisted that many players are underestimating the bullish potential that this presents. He noted that once Bitcoin holders sell their BTC, they cannot sell it again.
Meanwhile, long-term and institutional holders tend to accumulate and hold their assets. He noted that this would reduce the available supply. This is because the daily 900 BTC mined creates an imbalance, ultimately fueling upward price pressure.
Additionally, Bitcoin is gradually shrinking across centralized exchanges. This implies that investors are withdrawing their BTC to private wallets. This development has also reduced liquidity on the Bitcoin market and has the potential to increase selling pressure.
Will growing institutional demand fuel price surge?
Back maintained that these factors would contribute to driving up the value of Bitcoin on the broader cryptocurrency market.
Another catalyst for Bitcoin’s price growth is the growing institutional adoption of digital currency. Back stated that more institutional players might embrace Bitcoin, setting up conditions for increased demand.
Alex DovbnyaVarious states in the U.S. are making legislative moves to establish a Strategic Bitcoin Reserve, which could further increase demand. Per indications, hedge and sovereign wealth funds might be the key to the Bitcoin price pushing up in the coming months.
As of this writing, Bitcoin price was changing hands at $87,325.13, a 1.3% increase in the last 24 hours.
Dan Burgin
Vladislav Sopov