Bitcoin Price Outlook Bullish Ahead of Supply Shock as ETF Demand Surges
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Bitcoin's upcoming "halving" event will reduce mining rewards, constricting supply. This combined with rising demand from new Bitcoin ETFs could boost prices.
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10 Bitcoin spot ETFs launched on January 10th, seeing billions in inflows. This demand is already 2x the expected supply reduction from the halving.
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ETF demand has mostly come from retail so far, but institutional demand is expected to grow as more evaluate and approve the ETFs.
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External factors like regulatory moves in Japan, Hong Kong, and Europe could also drive more Bitcoin demand.
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Downside risks remain as well, like potential recession reducing overall asset demand. Large Bitcoin holders selling could also increase supply.