- Bitcoin’s path to $120,000 faces delays due to supply constraints.
- JPMorgan cites Bitcoin undervaluation versus gold.
- ETF inflows highlight retail demand, impacting supply.
Bitcoin’s journey to $120,000 has encountered delays due to shrinking illiquid supply and mixed market sentiment, highlighted by on-chain data and expert commentary.
Tightened supply impacts Bitcoin’s price trajectory, causing potential short-term volatility while maintaining long-term demand, with analysts noting mixed outlooks for the cryptocurrency’s future.
Bitcoin’s anticipated rise to $120,000 is encountering delays as illiquid supply tightens. Analysts from institutional leaders and on-chain data confirm mixed market sentiment affecting the trajectory. “As more Bitcoin is locked in cold storage and ETFs, near-term price expansions risk getting delayed, even in a bullish macro environment,” said Arthur Hayes, former CEO of BitMEX. Arthur Hayes, Former CEO, BitMEX
Key players include JPMorgan Chase, setting a price target of $165,000 citing undervaluation, and Mike Novogratz of Galaxy Digital predicting a price range of $120,000-$125,000.
The tighter illiquid supply is impacting market dynamics, potentially stalling Bitcoin’s climb despite strong institutional interest. ETF inflows surged on October 1, signaling both heightened demand and temporary supply strain.
Financial implications include reflective spot market liquidity tightness, potentially pausing upward Bitcoin trends. In this context, institutional appetite in CME futures swells, reflecting ongoing confidence.
Historically, supply constraints like these led to Bitcoin price consolidations. Experts suggest caution for the next quarters. Investors face potential short-term volatility before the next sustained advance.
Bitcoin’s illiquid nature could sustain potential gains post these shifts. Continued ETF demand may stabilize Bitcoin as a digital asset in a challenging macro environment. Experts emphasize the strength of historical precedents.
