CryptoQuant: a supply crisis awaits us

In the early morning hours of March 13, the price of bitcoin hit another all-time high. According to analysts at CryptoQuant, bitcoin spot ETFs are forcing the bears to fight a war they can't win. How will this spectacle end? CryptoQuant predicts a supply crisis in the short term.

A supply crisis for bitcoin

Kee Young Yoo, CEO and founder of CryptoQuant, expects a supply crisis in the foreseeable future. What that means. Simply put: there are too few bitcoins to meet the gigantic demand. The result? The bears are engaged in a battle they can't win:
"Last week, Spot Bitcoin ETFs recorded net inflows of more than 30,000 bitcoins. Reliable organizations such as exchanges and miners hold about 3 million bitcoins, including 1.5 million bitcoins owned by U.S. companies. At this rate, we will see a supply crisis in as little as six months. Bitcoin is currently in the price discovery phase. Once the supply crisis becomes a reality, the rise in the bitcoin price could exceed all expectations."

Bitcoin is heading towards a state of euphoria

Ki Young Ju also claims that the current market is halfway to "euphoria." When it comes to blockchain, Ki Young Ju sees retail investors cautiously entering the market again, but there are no signs of a price peak anytime soon.

We usually reach these price peaks when the unrealized gains indicator (purple line in the chart above) enters the red zone.
As you can see, we are currently moving up in a straight line and it won't take long to reach this zone. If we reach the red zone, we can always assume where the final peak is.
No one can say where it will end up. In fact, bitcoin theoretically has no price peak (or bottom) at all. This is the reason why the price of the digital currency can be so volatile, creating many exciting and stressful situations for investors.