Bitcoin has seen a remarkable surge, reclaiming the $65,000 milestone and driving the market with a 5.4% increase in the last 24 hours. The current rally has boosted Bitcoin’s market cap to $1.28 trillion. This surge is not just due to institutional FOMO but also the approval of the spot BTC ETF by the SEC in January. Over 300,000 BTC have been acquired since then, highlighting a significant supply shortage as demand outstrips daily production.
The focus on the spot Bitcoin ETF has created a notable supply shortage in the market. With the Bitcoin network producing only around 900 BTC daily while the ETF demand sits at 10,000 BTC, there is a clear imbalance. This shortage is expected to grow with the upcoming Bitcoin halving event, which will halve the supply and potentially lead to significant price increases.
Surpassing Bitcoin’s all-time high (ATH) of $68,789.63 seems achievable with a few more bullish pushes. Continued upward momentum could see Bitcoin breaking this barrier soon. Market experts foresee even higher prices for Bitcoin, with some predicting it could reach $1 million in the long term given the upcoming supply shortage.
While corrections are possible, Bitcoin’s fundamentals provide a strong basis for its growth, with the current rally potentially indicating even greater gains to come.