Breaking 'bear market' in Bitcoin demand will spark next BTC price surge — analysts
Bitcoin (BTC) demand has been in a “bear market” for a whole year, but a surge is most likely what will spark a new price run up.
That’s according to prominent economics analyst Lyn Alden, who in a Twitter debate this week bet on demand snowballing and lifting BTC price action.
Responding to a survey by stock-to-flow model creator PlanB, Alden said that a demand transformation is more likely to cause a BTC price boom than multiple other events favored by bulls.
These include the United States approving a spot price-based exchange-traded fund (ETF), a country following El Salvador to make Bitcoin legal tender, advancements in the Lightning Network and the knock-on effect of Bitcoin’s recent Taproot upgrade.
Instead, Alden agreed with Blockstream CEO Adam Back that significant change will come as a result of a positive feedback loop of supply and demand.
Back described the process as a “supply squeeze as ever more coins move to cold storage, continued buying, price run up then chased by reflexivity.”
“Reflexivity” refers to the mutually beneficial relationship of fundamentals and market expectations once an asset starts moving which triggers stronger and stronger performance.
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Analyzing the current state of supply against demand, however, Alden confirmed that 2021 had done little to change the status quo since the first quarter.
“BTC has been in a bear market in terms of demand since Q1 2021, back when ARKK peaked,” she argued alongside data from on-chain analytics firm Glassnode.
As Cointelegraph reported, Alden is not the only market commentator eyeing supply factors to add fuel to Bitcoin’s unlit fire this year.
Related: Bitcoin will emerge stronger after stocks dip ‘10%–20%’ — Bloomberg analyst
Even on a short-term basis, a
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