- Demand for BTC with the supply cut after the halving could trigger a new high.
- An analyst predicted that Bitcoin might hit a staggering $700,000.
Bitcoin [BTC] hit a $1 trillion market cap for the first time since December 2021, and on the same day, the number of coins on exchanges reached the lowest in six years. AMBCrypto confirmed this after considering what was happening in the market which has been green all week long.
Market cap hits $1 trillion, exchange balance drops
At press time, CoinMarketCap data showed that Bitcoin’s market cap was $1.022 trillion. This was out of a possible $1.94 trillion that the broader market had. A market share like this suggests that the coin still tightly held to its dominance.
In terms of the exchange data, we considered evaluating on-chain data from Glassnode. According to the analysis, the total balance of BTC on exchanges was 2.41 million in August, 2018.
It was noteworthy to mention that BTC’s price jumped from $6,154 to $10,810 in less than a year after the exchange balance was that low.
But as of this writing, the balance had fallen to 2.37 BTC.
Source: Glassnode
The decrease in total exchange balance suggests that many market participants are willing to HODL. Should the number continue to be lower, then a new All-Time High (ATH) might be in the works.
Beyond the exchange data, other metrics were supporting a Bitcoin high over the next few months. One of them is the Bitcoin halving. Bitcoin halving takes place every four eyes and this year’s will be the 4th. The idea behind the halving was to counteract inflation by maintaining scarcity.
Therefore, BTC hit a new ATH some months or years after each halving since demand increases after the supply cut. This time, it might not be any different. But whether the price would hit six or seven figures as been discussed in some corners remains a mystery to unravel.
Another factor that could drive Bitcoin’s price higher is the involvement of large institutions. AMBCrypto had on several occasions, reported how demand for Bitcoin ETFs seems to be growing. In the same vein, sell-offs spearheaded by asset manager Grayscale have reduced.
Signs will bring wonders for BTC
Regarding this and the impact on the price action, Cameron Winklevoss made some comments. According to Winklevoss, who is the co-founder of Gemini, demand for BTC was 10x more than what it usually was due to the ETFs. He also mentioned that after the halving, demand might soar 20x.
Bitcoin ETFs are taking 10x more bitcoin off the market than are being minted daily. If these inflows hold through the Halvening, then Bitcoin ETFs will be taking 20x more off the the market than the daily mint. I like where this is going.
— Cameron Winklevoss (@cameron) February 14, 2024
Should this be the case, BTC might rise much higher, and crossing the $69,000 previous ATH could become a piece of cake. Meanwhile, Adam Back, cryptographer and founder of Blockstream has predicted his own BTC price.
Read Bitcoin’s [BTC] Price Prediction 2024-2025
In his post on X, Back mentioned that the coin could hit gold’s market cap of $13.5 trillion faster. If this happens, then the price of one Bitcoin would be around $700,000 which Back noted wasn’t impossible.
so maybe #bitcoin flips gold fast than the ~$700k/BTC would imply from ~$13.5 trillion market cap, if #bitcoin gets gold out-flows pulling gold down to meet in the middle. all good, just another source of inflows.
— Adam Back (@adam3us) February 14, 2024
Source: https://ambcrypto.com/bitcoin-market-cap-crosses-1t-again-will-halving-push-it-even-higher/