Key Points
- Blockstream CEO Adam Back predicts that Bitcoin sellers will eventually run out of coins, leading to a price increase.
- Despite the recent Bitcoin halving event, the expected price surge has not yet occurred.
Adam Back, the CEO of Blockstream, recently shared his thoughts on the current state of the Bitcoin market via the X app. He focused on the role sellers are playing in keeping the price of Bitcoin contained.
Back is of the belief that those driving down asset prices, referred to as “bears”, will eventually run out of coins to sell. This statement comes in light of Bitcoin’s current lackluster performance, particularly evident in its mildly bearish market value.
Bitcoin Struggles to Break Through
Bitcoin, the leading cryptocurrency, began June with uncertainty, despite reaching a new all-time high in mid-March. The slight drop in Bitcoin’s price coincided with the decline in hype surrounding spot Bitcoin ETFs, which also experienced significant outflows a few weeks ago.
At present, the flagship digital currency is trading at $68,870.91, reflecting a 0.21% decrease in value over the past 24 hours. This trend has been consistent over the past few weeks. Despite demonstrating strong resilience, Bitcoin has been unable to break through to a new price level. This sentiment is widely believed to be associated with the activities of the bears, which aligns with Back’s statement.
In recent months, the Bitcoin ecosystem has seen several significant events that were expected to drive its price to unprecedented levels, including the launch of spot Bitcoin ETFs. These offerings were made available following approval from the United States Securities and Exchange Commission (SEC). However, Bitcoin’s growth has slowed since hitting its all-time high.
Impact of Bitcoin Halving on Price
The Bitcoin halving event, which occurs every four years and halves the supply of the cryptocurrency as well as mining rewards, took place in April. It was anticipated that this supply shock would lead to a significant increase in Bitcoin’s price. Anthony Scaramucci, founder of SkyBridge and a prominent figure in the crypto industry, was confident that Bitcoin could surpass $170,000 a year after the halving.
So far, the market has not felt the impact of the halving, as evidenced by the current Bitcoin price level.
However, Back believes that there will come a time when the effects of the halving supply shock will be fully realized. He speculates that this will occur due to a combination of factors, including reflexivity, traditional finance brokers and advisors contacting their clients, and fear-of-missing-out (FOMO) purchases from those who have been “waiting for a dip”.
When this happens, Back predicts that sellers will become “exhausted” and exit the market, paving the way for a significant Bitcoin recovery.
Veteran crypto trader Peter Brandt also believes that the recent Bitcoin halving could serve as a catalyst for another significant price rally. He predicts that the price of Bitcoin could reach between $130,000 and $150,000 by 2025. According to Back’s projections, demand for ETFs will also increase in the coming months.
