Bitcoin Faces Supply Shock as Halving and Institutional Demand Surge

Max Keiser, a prominent advocate for Bitcoin and advisor to the President of El Salvador, has recently predicted an imminent supply shock that could significantly boost Bitcoin prices. Keiser, along with Samson Mow, CEO of JAN3, has warned the market about a potential supply crunch as demand continues to surge.

Keiser's prediction is based on the fixed supply limit of 21 million Bitcoins, with nearly 20 million already mined. The halving event, which occurs every four years, reduces the number of new Bitcoins generated. The most recent halving in April 2024 cut the block reward to 3.125 BTC, further tightening the supply. The next halving in 2028 is expected to exacerbate this supply constraint, contributing to Keiser's prediction of a supply shock.

Samson Mow, who has long advocated for Bitcoin's potential to reach $1 million, first predicted this supply shock in January 2024, following the approval of spot Bitcoin ETFs by U.S. regulators. Mow also warned about a potential demand shock, as institutions and investors rapidly acquire Bitcoin, which could outpace the limited supply, driving prices higher.

Institutional adoption of Bitcoin continues to grow. MicroStrategy, led by Michael Saylor, has accumulated 592,345 BTC, making it the second-largest holder after BlackRock. Other firms, such as Metaplanet from Japan and ProCap BTC, founded by crypto investor Anthony Pompliano, are also adding Bitcoin to their treasuries. Bitcoin advocate Adam Livingston noted that the supply is shrinking as major companies and ETFs quickly buy in, while everyday holders are selling, creating an imbalance that could trigger a significant market shift.

With the new supply slowing and large-scale buyers continuing to accumulate, Keiser and Mow believe a breakout could be imminent. The combination of a fixed supply, growing institutional interest, and global adoption by countries makes for a powerful setup. While the future remains uncertain, the fundamentals suggest that Bitcoin's next move could be significant, presenting a major opportunity for investors.