In recent developments, Bitcoin’s price trajectory remains critical as it stays just below its January high, according to COINOTAG News on May 20th. The ETF provider, 21Shares, has expressed a bullish outlook, asserting that Bitcoin’s potential for further appreciation is intact. Matt Mena, a research strategist at 21Shares, indicated in a Monday report that the digital currency is poised for a significant breakthrough. Unlike previous surges, this rally appears underpinned by fundamental factors, including substantial institutional investments, historical supply constraints, and a favorable macroeconomic climate.
The dynamics of Bitcoin supply are further influenced by the increasing demand from spot Bitcoin ETFs, which currently absorb more coins than are created through mining processes. This supply squeeze is catalyzed by the growing interest from major corporations like Strategy and emerging investment firms such as Twenty One Capital, alongside certain nations contemplating the establishment of strategic reserves. Mena anticipates that if these trends persist, Bitcoin could realistically approach a value of $138,500 by the end of the year.