
The price of Bitcoin has been stable over the past few months, and is near record highs as demand remains high. The coin was trading at $101,760, up nearly 570% from its lowest point in 2022, making it the best-performing major asset.
Bitcoin demand and supply dynamics
All signs indicate that the demand and supply dynamics of Bitcoin are strong, which explains why the price may rise in the near term.
Bitcoin has a supply cap of 21 million coins and the total supply so far is 19.79 million. This leaves approximately 1.21 million coins left to be minted.
At the same time, millions of coins have been permanently lost, while the volume of Bitcoin on exchanges has fallen to its lowest level in years. The number of these coins is approximately 2.2 million, which means millions of coins are held in self-custody accounts.
The mining difficulty of Bitcoin is continuously increasing, especially due to halving events. It is unclear whether many mining companies will produce enough coins in the next few decades.
so, bitcoin supply This will remain a major challenge in the next few years. Also, demand is expected to increase in the next few years. Recent data shows that spot Bitcoin ETFs are seeing strong inflows. More than $35 billion has been invested in these funds this year, a trend that may continue over the next few years.
Most importantly, companies will continue to buy more coins in the future. The data shows that companies like MicroStrategy, Marathon Digital, Riot Platforms, Tesla, and Coinbase hold thousands of the coins. Other large holders include companies like Block, Galaxy Digital, Semler Scientific, and Nexon who have continued to buy more coins.
The next wave of purchases will likely come from mainstream companies like Apple, NVIDIA, and Amazon. These companies have seen the success of MicroStrategy and will likely want to replicate it over time.
Countries will start buying BTC
After that, countries will probably start buying these coins. Already, the US has thousands of Bitcoins that it has seized from criminal organizations. Donald Trump is considering converting these coins into strategic reserves.
If this happens, more countries will likely adopt Bitcoin as their reserve asset. Already, most countries like China, Russia, and Türkiye have invested in gold, and many analysts see Bitcoin as digital gold. If this happens, it will make the scarce asset Bitcoin even rarer.
The main catalyst for such a move would be rising global debt, which is in a strong growth trend. US now has over $36.3 trillion In public debt, this figure is increasing by $1 trillion each quarter. This means that in the next few years it will cross the $40 trillion mark.
Other countries are also not performing well. For example, China has a debt of 71 trillion RMB or more than 69% of GDP, a figure that is rising. The same trend is happening in Europe too, where a country like France is seeing a decline of about 10%.
Therefore, it is likely that these countries will move towards Bitcoin, which is seen as a good asset.
bitcoin price analysis

The weekly chart shows that the price of Bitcoin has been on a strong rise over the past few months. It has been consistently above all moving averages and has formed a cup and handle pattern.
If we measure the depth of the cup, we can assume that the coin will rise to $122,000 in this bullish cycle. If this happens, there will be a slight decline and then a strong bullish trend will resume over the next few months. Over time, Bitcoin could rise to more than $200,000.
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