U.Today – So far this week, the cryptocurrency market has experienced two extreme sides of price movement, surging to an all-time high (ATH) of over $108,000 while falling to $95,587.68. This week also saw a series of massive accumulations by top pro-Bitcoin companies. Despite this trend, Bitcoin prices are still falling and Samson Mo has broken his silence on what is going on.
Bitcoin supply shock is coming
Samson Mo said in a post on X that he often sees people asking why the price of Bitcoin keeps falling and there is no supply even though everyone is buying it. In response, he said that what has happened over the past month is simply the market acting irrationally in the face of limited Bitcoin supply.
Earlier this week, MicroStrategy purchased an additional $1.5 billion worth of Bitcoin, increasing its total holdings to 439,000 BTC. In addition to MicroStrategy, other small and medium-sized companies holding Bitcoin government bonds, including MARA Holdings, also announced large-scale purchases, effectively depleting Bitcoin's circulating supply.
Amid this buying spree, the market has not moved beyond the $108,000 level. In fact, it has not been able to maintain support around $100,000.
In response, Samson Mo said investors need to trust their instincts and understand that “a supply shock is coming.”
BTC price recovery is imminent
Every time MicroStratey announces a Bitcoin purchase, as it has been doing for the past six weeks, market traders find a way to rebalance the price to the average purchase price. It remains unclear whether new purchases will be announced over the next week, but the market is likely to rebalance ahead of the announcement of a potential buyout.
At the time of writing, Bitcoin price has fallen 3.54% in 24 hours to $95,243.24. Amid the continued freefall, the coin has formed strong support around this price range for the past month, so we are sure to see a major retest of this level.
This article was originally published on U.Today
