Bitcoin has stagnated over recent weeks and months after peaking at $12,500 in August. The leading cryptocurrency currently trades at $11,450, stuck in the middle of the range between $10,000 and $12,500. Throughout this, institutions have increased their exposure to Bitcoin en-masse, with tens of thousands of coins being accumulated.
A prominent macro thinker and gold bull thinks that this may mean that there may soon be a Bitcoin “shortage.” This shortage will likely drive prices higher as demand for BTC outweighs the market supply, which is only compounded by the May 2020 halving.
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Expect a Bitcoin Shortage?
Over recent months, it’s been clear that institutions have increased their exposure to Bitcoin at a rapid clip.
Just recently, Stone Ridge Asset Management announced that it had picked up 10,000 Bitcoin. The $10 billion asset manager explained that it sees the cryptocurrency as a crucial investment in the shift towards open monetary systems. It was added that the COVID-19 pandemic and the subsequent macroeconomic fallout showed them that the traditional way of constructing portfolios may be flawed.
Dan Tapiero, the co-founder of Gold Bullion International amongst other companies, thinks that shortages of Bitcoin are possible as the cryptocurrency is accumulated en-masse:
“SHORTAGES of #Bitcoin possible. Barry’s @Grayscale trust is eating up btc like there is no tomorrow. If 77% of all newly mined turns into 110%, it’s lights out. Non-miner supply will get