In an insightful projection, Hunter Horsley, Bitwise CEO, predicted that Bitcoin owners will cease to sell as the cryptocurrency surpasses the $130,000 mark. “My forecast is that when Bitcoin crosses, for instance, the $130-150k threshold, no one will want to sell their Bitcoin,” Horsley said during a recent online session.
Mike Novogratz, the founder of Galaxy Digital, has also hinted at the possibility of such prices this year, attributing this to the rising institutional investments and an increased craving for digital assets.
Bitcoin (BTC) is currently floating around its peak, trading at $108,698, merely $3,272 below its all-time high of $111,970 recorded on May 22, based on CoinMarketCap data. The selling pressure, as per Horsley, largely comes from early adopters who bought Bitcoin at significantly lower prices and are now cashing in on the landmark $100,000 level.
“It seems that at $100k, individuals who hold large amounts of Bitcoin bought a long time ago at very low prices are selling some,” Horsley stated. However, he believes this situation will be short-lived, and selling will decline as Bitcoin breaks new records.
Even before Bitcoin exceeded $100,000 on May 8, Glassnode, the onchain analytics firm, warned of older investors selling as the level was achieved.
Horsley further argued that Bitcoin holders who need funds in the future will devise alternative methods to leverage their Bitcoin without selling. “Eventually, when people need liquidity, they will resort to borrowing from an ever-increasing pool of lenders,” he said.
The potential tightening in Bitcoin supply has become a hot topic in the industry. There are signs of a dwindling supply among OTC desks, which handle large off-exchange transactions. Michael Saylor of Strategy voiced a similar view recently. On June 10, Saylor mentioned that around 450 Bitcoin are up for sale daily by Bitcoin miners, representing roughly $50 million at its current price. If that amount is bought, the price has to rise, Saylor concluded.
Please note that this article does not offer investment advice or recommendations. Investments and trading moves come with risks, and readers should undertake their own research before making a decision.
