Bitcoin is set to benefit from the fundamental laws of supply and demand, according to crypto analyst Ali Martinez. Martinez, who has a following of 62,300 on the social media platform X, explains that after Bitcoin reached an all-time high of over $73,700 in March, the market was flooded with the cryptocurrency, resulting in profits for long-term holders. However, the increased supply surpassed the demand, causing a correction that led to Bitcoin’s price dropping below $57,000. This created fear in the market, as short-term holders are more likely to sell based on price volatility. Despite this, the short-term holder realized price, currently at $60,500, acted as an accumulation point, with long-term holders comfortable adding over 70,000 BTC to their positions. Martinez predicts that demand for Bitcoin will soon outstrip supply, citing the movement of over 30,000 BTC to private wallets for long-term holding since May as evidence of confidence among holders in Bitcoin’s future value. At the time of writing, BTC is trading at $65,411.
