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?
Interest rate cuts could help bitcoin
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.
He pointed to Switzerland’s decision to cut interest rates this year as evidence that several major economies are planning to stimulate their economies. George believes this will lead to an increase in liquidity, with a significant portion likely to be invested in assets such as bitcoin.
ETFs can also play a role
Furthermore, George highlighted the impact of Exchange-Traded Funds (ETFs) on the price of bitcoin. He pointed out that the slowdown in Grayscale outflows indicates declining supply, which could contribute to the supply bottleneck. The launch of new ETFs is expected to create more inflows, further limiting supply. If the supply of bitcoin decreases, there is a chance that the price will continue to rise.
Grayscale’s sale of half of its ETF offering in just 11 weeks indicates it could soon run out of volume, according to George. This situation, combined with the additional money injected by other ETFs, could be a pivotal moment for bitcoin’s supply crunch.
Positive future expectations for bitcoin
In terms of future prospects, George is optimistic about bitcoin. He believes there is significant room for growth and predicts it could rise to $500,000 by the end of 2025.
Source: https://bitcoinmagazine.nl/nieuws/supply-squeeze-onvermijdelijk-bitcoin
