21Shares Predicts Bitcoin Rally to $138,500 Driven by Institutional Inflows and Supply Tightening

21Shares, a prominent digital asset ETF issuer, has expressed optimism about Bitcoin's potential for a significant year-end rally. Despite Bitcoin's price hovering slightly below this year's January high, the company believes there is still substantial room for growth. According to a report released by 21Shares on Monday, the current Bitcoin rally is not driven by retail frenzy but by multiple structural forces working together. These forces include institutional inflows, historical supply tightening, and an improving macroeconomic environment.

Matt Mena, the research strategist at 21Shares, highlighted that the amount of Bitcoin continuously absorbed by spot Bitcoin ETFs exceeds daily mining output, further tightening the supply. This, combined with major institutions and companies like Strategy and Twenty One Capital accumulating Bitcoin, suggests a more sustainable and mature path towards a new all-time high. Additionally, some countries are beginning to explore establishing strategic reserves of Bitcoin, further bolstering its potential for growth.

Mena predicts that the combined effect of these factors could drive Bitcoin to $138,500 this year. This forecast is based on the current structural forces at play and the improving macroeconomic environment, which are expected to support Bitcoin's price movement. The report emphasizes that the current rally is not a result of retail frenzy but a more mature and sustainable growth driven by institutional interest and supply tightening.