PakGazette – So far this week, the cryptocurrency market has tested two extreme sides of the price movement: it has shot up to an all-time high (ATH) above $108,000 and dropped as low as $95,587.68. The week also saw a streak of massive accumulation by major pro-Bitcoin companies. Despite this trend, Bitcoin prices still fell and Samson Mow broke his silence on what is happening.
A Bitcoin Supply Shock Looms
In a post on X, Samson Mow noted that he often sees people asking why the price of Bitcoin has continued to fall even though everyone is buying and there is no supply. In response, he said that the events of last month are simply the irrational behavior of the market with the limited supply of Bitcoin.
Earlier this week, MicroStrategy purchased another $1.5 billion worth of Bitcoin to increase its total holdings to 439,000 BTC. Beyond MicroStrategy, other smaller companies with Bitcoin treasuries, including MARA Holdings, also announced major purchases, effectively depleting the circulating supply of the currency.
Amid this buying, the market has not broken above the $108,000 level; rather, it has failed to hold support around the $100,000 mark.
In his reaction, Samson Mow said investors should trust their instincts and understand that “a supply shock is coming.”
BTC price recovery imminent
Every time MicroStratey announces a purchase of Bitcoin, as it has done for the past six weeks, market traders find a way to rebalance their prices relative to their average purchase price. While it remains uncertain whether another purchase will be announced next week, the market is likely to rebalance ahead of the potential purchase announcement.
At the time of writing, the price of Bitcoin has fallen 3.54% in 24 hours to $95,243.24. Amid the ongoing free fall, the coin is likely to experience a major retest of this level as it has formed strong support in this price range over the past month.
