Bitcoin’s current supply is dwindling and exchange reserves have fallen to a seven-year low, fueling speculation that the asset could surge to $200,000 amid rising institutional demand.
Bitcoin Price Could Reach $200,000 as Exchange Supply Drops to Seven-Year Low
Data from CryptoQuant reveals that investors have pulled $504 billion worth of Bitcoin from exchanges over the past five years. The massive outflow has significantly reduced the available supply, creating a potential supply shock that could send prices soaring.
At the same time, institutional interest in Bitcoin continues to grow, particularly from Wall Street firms and large asset managers.
“We could see this squeeze higher and there is an incentive to keep prices high,” 10x Research co-founder Markus Thielen said during a recent podcast with investor Scott Melker.
Trump’s Pro-Crypto Policies Could Boost Bitcoin’s Rise
Adding to Bitcoin’s bullish outlook, former US President Donald Trump recently signed an executive order declaring the growth of the crypto industry a “national priority.”
Industry leaders are calling it a turning point. Bitwise CIO Matt Hougan called the move “massively bullish” and predicted it would bring trillions of dollars to the crypto market.
Hougan has previously predicted that Bitcoin could reach $200,000 by 2025, a view echoed by analysts Standard Chartered and Bernstein. This week, he suggested that $200,000 might even be a conservative estimate.
*This is not investment advice.
Continue Reading: Exchanges’ Bitcoin Reserves Drop to Seven-Year Low! What Does This Mean? Here Are the Details
