According to CryptoQuant, supply for Bitcoin on exchanges is trending lower and may continue to squeeze the BTC price up. This could be a sign that investors are becoming more bullish on Bitcoin, expecting prices to rise and choosing to hold their assets in anticipation of future gains.

Bitcoin exchange reserves, source: CryptoQuant

Based on this, well-known Bitcoin maxi Max Keiser, made some eyebrow-raising predictions. Keiser believes US$220K (AU$334.5K) is a possibility for Bitcoin.

The tweet came in response to another Bitcoin proponent, Vivek, who had initially posted about the decreasing supply of Bitcoin.

Related: High Risk, Low Reward: Data Analyst Weighs in on Memecoin Investing

Generally, prices rise when the supply on exchanges drops and demand stays steady or increases, as fewer available Bitcoins lead to competitive buying. This expectation can drive prices up further, especially in high-risk environments like cryptocurrencies.

Additionally, a decrease in supply often indicates that investors are moving their Bitcoin to private wallets for long-term holding, which reduces market liquidity and potentially increases price.

Data Points to Cooling Retail Interest

However, despite the BTC supply decreasing following the recent halving, the demand side remains less predictable than some might prefer. According to Google Trends the search term for Bitcoin is trending down, possibly coinciding with the slightly cooling interest in Spot Bitcoin ETFs.

Bitcoin search term over the past 12 months, source: Google Trends

Of course, this could simply mean that Bitcoin and crypto have become more mainstream, and people simply don’t need to search the term as much anymore.

But there is another metric which indicates a decrease in interest by retail investors: the traffic to and from crypto exchanges is trending downward too.

An analysis by CryptoCrunch shows that large exchanges like Binance (-26%) and Coinbase (-31%) registered less traffic in April. Still, with 75 million visits and 44 million respectively both exchanges account for an impressive volume.

Exchange visits, source: CryptoCrunch

And it should also be noted that Bitcoin has seen an impressive rally since October 2023 and naturally a breather had to follow.

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The post Bitcoin ‘God Candle’ Could Skyrocket Value to $220K, Predicts Advocate Max Keiser appeared first on Crypto News Australia.

Filed under: Bitcoin - @ May 9, 2024 4:24 am