Good morning Bitcoin: bulls react to price decline

Good morning! We have listed the latest news for you. Start the day with a bitcoin breakfast.

George from the CryptosRUs crypto YouTube channel recently shared his insights that the supply of bitcoin may become very tight, which could lead to a ‘supply squeeze’. In a video, he emphasized that investors should remain optimistic about the future of bitcoin, despite the price drops over the past week. But why does George expect this supply squeeze to come?

George predicts that upcoming macroeconomic events, especially the possible interest rate cuts by the US Federal Reserve and other major economies, will create a favorable environment for bitcoin.

During the past week’s bitcoin price declines, Michael Saylor, bitcoin proponent and chairman of MicroStrategy, has turned heads with his optimistic view of the situation. In a recent post on X, Saylor stated that “volatility is vitality.” In doing so, he suggests that the current fluctuations in the crypto market are a sign of vibrancy.

Bitcoin has indeed seen quite a bit of volatility after reaching an all-time high of $73,797.68 last week. However, it has since fallen nearly 13% from its peak as interest in newly emerging spot bitcoin exchange-traded funds wanes.

Cathie Wood, the CEO of Ark Invest, sees a lot of growth potential for bitcoin. She predicts that the digital currency could reach a value of $1.5 million per coin in the future. At the Bitcoin Investor Day conference in New York on March 22, Wood provided more details about her bullish view. She suggests that if institutions allocate about 5% of their portfolios to bitcoin, its value could rise well above $1.5 million, possibly as high as $2.3 million.

Her view is based on the assumption that major financial institutions will increasingly embrace bitcoin, especially following the recent approval by the US Securities and Exchange Commission (SEC) of the first spot Bitcoin ETFs. Cathie Wood viewed this development as an important moment for the mainstream adoption of bitcoin, reinforcing her belief in the cryptocurrency’s integration into the global financial system.