Bitcoin (BTC) Price Prediction 2024-25: BTC to Get Scarcer and Dearer?

Bitcoin [BTC] continues to show the crypto market why it's the king coin. After nearly a month of consolidation and sideways movement, the market leader hit a new record high after smashing past $80K.

Bitcoin price continues to show why it is called the king currency of the cryptocurrency markets after reaching a new record high.

The market leader reached an all-time high, surpassing $80,000 after nearly a month of consolidation and sideways movement.

As AMBCrypto found using CoinMarketCap data, the cryptocurrency is up more than 5% in 24 hours and more than 1 in the last seven days.

Bullish environment for growth

Bitcoin's move comes with an overall market bullish environment, especially after the SEC approved spot Bitcoin exchange-traded funds (ETFs) in January.

Approximately $26 billion worth of BTC has been transferred to these funds since their listing, according to AMBCrypto's analysis of SoSo Value data.

Also, inflows increased significantly following the initial wave of outflows from Grayscale Bitcoin Trust (GBTC).

Additionally, as of this writing, assets under management (AUMs) for Bitcoin spot ETFs were approximately $79 billion, accounting for 5.21% of Bitcoin's total supply.

Source: SosoValue

There are other non-crypto reasons that could explain Bitcoin's performance.

Inflation has fallen significantly in the last few months. The job market has also gotten better.

This situation caused the US Federal Reserve (Fed) to adopt a relatively dovish approach, and interest rates were left constant at last month's FOMC meeting.

The broad consensus among investors and policymakers was that rates would remain unchanged at the next meeting, but there was a possibility of an interest rate cut later in the year if inflation remained under control.

The effect of this was to allow people to start spending money on risk-prone assets, such as stocks and cryptocurrencies.

Will Bitcoin become scarcer and more expensive?

The increase in the amount of Bitcoin locked in spot ETFs has created a shortage in the broader market.

According to AMBCrypto's analysis of Santiment data, a decrease in supply on exchanges was observed in this context.

Furthermore, as of this writing, approximately 9% of Bitcoin's total circulating supply was held on exchanges, down from the approximate level we saw at the beginning of 2024.

Source: Santiment

Also, while supply decreased, there was no slowdown on the demand side. Unlike previous bull cycles, the 2024 Bitcoin rally is driven by both retail and institutional interest.

AMBCrypto has noticed a significant increase in whale holdings holding 1,000 coins using Glassnode, while addresses with non-zero balances have also increased since the beginning of 2024.

Source: Glassnode

Is the rocket preparing for the moon?

This bullish scenario of decreasing supply and rising demand has the potential to push Bitcoin to all-time highs this cycle.

Check out Bitcoin's [BTC] 2024-25 Price Forecast

Famous technical analyst Ali Martinez had previously predicted that the market peak would occur sometime between November 2024 and February 2025.

So $80,000 looks like the starting point we saw when we jumped off the ground. Looks like the rocket has enough fuel to get to the moon!

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