- According to George of CryptosRUs, a supply squeeze is imminent for Bitcoin soon.
- George noted that the effect of upcoming macroeconomic events will favor Bitcoin.
- The analyst believes Grayscale’s diminishing supply will promote the upcoming Bitcoin squeeze.
According to George of CryptosRUs crypto YouTube channel, a supply squeeze is imminent for Bitcoin soon. George noted that Bitcoin has slowed down over the past several days, but it does not mean market participants should give up on the pioneer cryptocurrency. He believes coming events will regenerate an active market for Bitcoin.
In a recently uploaded video, George argued that the effect of upcoming macroeconomic events will favor Bitcoin. The CryptosRUs analyst highlighted the proposed interest rate cuts by the U.S. Federal Reserve as a signal for an imminent Bitcoin supply squeeze. He further noted that other top economies plan the same thing and would implement rate cuts.
To explain this, George cited Switzerland, one of the top economies to implement rate cuts this year. He considers it a confirmation that several other top economies have concluded plans to revitalize their economies soon. The analyst believes it would encourage liquidity flows, with a significant volume flowing into assets, including Bitcoin.
Another factor George thinks will contribute to the supply squeeze is the ETFs. In his analysis, he predicts the outflow seen on Grayscale is bound to slow down based on a diminishing supply. According to him, that would have a massive impact on the Bitcoin supply squeeze, especially with the newly launched ETFs creating more inflow.
The analyst noted that Grayscale sold half of its ETF supply in eleven weeks, suggesting they would soon run out of volume. According to George, that would be a significant moment for the supply squeeze, especially with the other ETFs injecting more money into the Bitcoin ecosystem.
For prediction, George believes Bitcoin has more room for growth and could rally to $500,000 by the end of 2025. The flagship crypto traded for $65,191 at the time of writing, recovering from a recent dip to $60,760, according to data from TradingView.
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