Bitcoin is entering a new phase of supply constraints that could significantly impact its price in the months ahead, according to Katalin Tischhauser, head of research at the digital asset banking group Sygnum. In a recent interview , Tischhauser pointed to what she calls a “supply shock” — a state in which Bitcoin’s liquid supply is dwindling while institutional demand continues to grow. “Large demand will have a strong multiplier effect,” Tischhauser said, estimating that for every $1 of net new demand, Bitcoin’s market capitalization could increase by $20 to $30. “We have already seen this multiplier effect after the launch of the BTC spot ETFs or around the US elections,” she added. BTC’s supply, particularly the portion actively traded, has been declining over the past 18 months. Tischhauser attributes this trend to the rise of long-term holding structures such as institutional acquisition vehicles, including Strategy and Twenty One Capital. These entities are accumulating Bitcoin with the intention of holding it off exchanges, which reduces the amount available to meet new demand. A Perfect Storm of Bullish Drivers Tischhauser also pointed to macroeconomic and regulatory developments contributing to her bullish outlook. With rising concerns over inflation and increasing global interest in BTC as a deflationary store of value, the narrative of Bitcoin as “digital gold” is gaining traction. Additionally, regulatory clarity in the United States and other major economies is encouraging institutional participation, which could further reduce supply available for retail investors. Since April 16, U.S. spot Bitcoin ETFs have only seen four days of outflows , indicating steady institutional interest and capital inflow. This consistent demand, combined with structural supply constraints, sets up what some analysts believe could be a dramatic rally in the coming quarters. Healthy Pause in Bitcoin Price Nick Forster, founder of on-chain options protocol Derive, agrees that Bitcoin could be preparing for its next major move , but not before taking a breather. “The current price action suggests a phase of consolidation,” Forster said, calling it a “healthy pause” that allows the market to stabilize after reaching new highs. This period of sideways movement may also serve as a base for a strong upward push, with some analysts projecting BTC’s next peak between $200,000 and $300,000. As the supply continues to tighten and demand holds strong, the groundwork may already be in place for next bull run. The post Bitcoin Shrinking Supply Sets Stage for Potential Price Surge appeared first on TheCoinrise.com .
