Bitcoin prices have been rising steadily, which is mainly due to the halving of new supply and increasing demand from institutional investors. Bitcoin halving, which happened in April, reduced the reward for each new block mined, making mining more difficult and expensive. This has led to a supply shock, causing the price to rise as demand exceeds supply.
The introduction of Bitcoin ETFs in the US this year has also increased demand, with institutional investors buying more Bitcoin. This has created a “flywheel effect,” where demand increases and the price rises further. As only 94% of Bitcoins are in circulation or lost, the limited supply puts pressure on prices, leading to expectations of further increases in the coming months and years.
