Sygnum: The supply shock could amplify the price of Bitcoin in the coming months.

Bitcoin is entering a phase of supply scarcity, a development that is expected to create more significant price fluctuations compared to previous cycles. This is the opinion of Katalin Tischhauser, head of research at Sygnum – the digital asset banking group.

“High demand can create a significant multiplier effect, with every 1 dollar of demand likely leading to a market capitalization increase of 20 to 30 dollars. We have witnessed this effect occur after the launch of spot Bitcoin ETFs, as well as in the context of elections in the US,” she noted.

Tischhauser emphasized that the liquidity supply of Bitcoin is becoming increasingly limited, while demand from large institutional investors continues to rise. This is the factor that could drive the price of BTC to surge in the coming months.

“This liquidity supply has continuously decreased over the past 1.5 years, partly due to the emergence of Bitcoin investment vehicles such as Strategy, Twenty One Capital, and many other organizations,” she explained.

In addition, Tischhauser pointed out several structural factors that are positively supporting the bullish outlook for Bitcoin. These factors include greater clarity in regulatory frameworks, pressure from the macroeconomic environment, along with the increasing appeal of Bitcoin as an anti-inflation asset.

Notably, Bitcoin ETF funds have only recorded four days of outflows since April 16, indicating strong interest from investors.

Accumulating Bitcoin: A “healthy pause”

Nick Forster, the founder of Derive, stated that Bitcoin is likely to enter a “accumulation phase” which he refers to as a “healthy pause.”

According to Forster, this period will give “the market an opportunity to absorb the recent gains and prepare for the next stage of development.” Some analysts have even made optimistic forecasts, with a price target that could reach between $200,000 and $300,000 in the future.

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