Investors in altcoins have been experiencing substantial losses in recent months due to the stagnant market. However, there is hope that this trend may soon be reversed if Bitcoin is able to surpass its all-time high of $73,777 and reach new peaks. Currently, BTC is hovering above $68,000, which is raising optimism among investors. Experts weigh in on the situation.
One factor that could potentially lead to a reversal in the market is a supply shock in Bitcoin. There has been a resurgence in demand for ETFs, indicating increased institutional interest and confidence in future prices. Despite being relatively new, the inflows of BTC into ETFs have resulted in a significant accumulation of supply in the reserves of institutional players like BlackRock.
Renowned cryptocurrency analyst Nic recently shared insights on the expected supply shock. He believes that for BTC prices to surge towards six-figure targets, there needs to be a simultaneous increase in demand and a decrease in supply on exchanges.
Bitcoin and cryptocurrencies as a whole are expected to benefit from this supply shock. Titan Of Crypto confidently states that BTC can now focus on reaching its $98,000 target due to the momentum that has been created. The analyst points to patterns from previous years on the chart, suggesting that upcoming phases will be much more exciting.
Another perspective comes from Benjamin Cowen, who emphasizes the significance of his findings for altcoin futures. He highlights that in nine out of the last ten quarters, the ETH/BTC pair has seen negative performance. This implies that altcoins may only begin to rise if ETH comes under pressure against BTC.
Investors are advised to exercise caution and conduct their own research as cryptocurrencies are highly volatile and carry a significant level of risk. This article does not constitute investment advice.