Bitcoin Surges Past $97K as Industry Experts Bullish on Future

Bitcoin (BTC) price has surged past the $97,000 mark, reclaiming a significant milestone, and industry experts are bullish on its future prospects. Adam Back, the founder of Blockstream, has shared his optimistic outlook on Bitcoin, highlighting several factors that could drive its growth in the broader cryptocurrency market.

Back emphasized the strong supply-demand dynamics at play, with demand for Bitcoin ETFs outstripping selling pressure. He believes that this imbalance will soon create buy pressure, positively impacting Bitcoin's price. The Blockstream founder noted that many market players are underestimating the bullish potential of this dynamic, as once Bitcoin holders sell their BTC, they cannot sell it again. This, coupled with long-term and institutional holders accumulating and holding their assets, reduces the available supply. The daily mining of 900 BTC further exacerbates this imbalance, ultimately fueling upward price pressure.

Additionally, Bitcoin's supply is gradually shrinking across centralized exchanges, as investors withdraw their BTC to private wallets. This development reduces liquidity on the Bitcoin market and has the potential to increase selling pressure. However, Back maintains that these factors will contribute to driving up the value of Bitcoin on the broader cryptocurrency market.

Another catalyst for Bitcoin's price growth is the growing institutional adoption of digital currency. Back stated that more institutional players might embrace Bitcoin, setting up conditions for increased demand. Various states in the U.S. are making legislative moves to establish a Strategic Bitcoin Reserve, which could further increase demand. Per indications, hedge and sovereign wealth funds might be the key to the Bitcoin price pushing up in the coming months.