Bitcoin’s Liquidity Tightens as Institutional Demand Builds, Analysts See Bullish Potential

Bitcoin may be on the verge of a major supply squeeze, with dwindling availability and accelerating institutional interest setting the stage for potentially explosive price action, according to Sygnum Bank’s Katalin Tischhauser.

She suggests that even modest demand could now have an outsized impact on Bitcoin’s market cap, with each dollar possibly adding $20 to $30 in value. Events like the launch of spot ETFs and the U.S. election season have already demonstrated how quickly capital can move into BTC.

This tightening supply isn’t accidental. Over the past 18 months, a growing number of Bitcoin-focused investment vehicles—such as Strategy and Twenty One Capital—have been absorbing significant amounts of BTC, reducing what’s available for trading.

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Tischhauser also points to broader structural trends—regulatory improvements, economic uncertainty, and Bitcoin’s deflationary appeal—as key drivers behind the growing bullish outlook. With ETFs showing consistent inflows since mid-April, the momentum doesn’t appear to be fading.

Meanwhile, Derive’s Nick Forster believes the current period of price stability is a healthy cooldown, giving the market space to reset before the next move. While Bitcoin remains above $103,000, some forecasts are already eyeing $200,000 and beyond.