Bitcoin News Today – Headlines for October 16

  • Bitcoin’s adoption and accumulation is on the rise
  • There might soon be a Bitcoin shortage
  • Institutions are increasing their exposure to Bitcoin

Bitcoin News Today – The price of Bitcoin has been relatively stagnant over the past few weeks and months after it peaked at $12,500 in August. The world’s most dominant digital currency is currently changing hands around the $11,400 mark, stuck between the range of $10,000 and $12,500.

While the digital currency has been stuck within that range, institutions have increased their exposure to BTC en-masse, and they are accumulating tens of thousands of coins. A prominent gold bull and macro thinker believes this may mean that there might soon be a Bitcoin shortage. The shortage would likely push the price of the digital currency higher as its demand would outweigh the market supply, which is only compounded by the halving event that took place in May this year.

Bitcoin (BTC) Price Today – BTC / USD

NamePrice24H %
bitcoin
Bitcoin(BTC)
$49,061.00
5.53%

There May Soon Be Bitcoin Shortage

Over the past couple of months, it has been clear that institutions have increased their exposure to BTC at a fast rate. Recently, Stone Ridge Asset Management – a $10 billion asset manager – announced that it bought 10,000 BTCs. The firm said that it sees the digital currency as a vital investment in the shift towards open monetary systems.

They added that the pandemic caused by the COVID-19 and the subsequent macroeconomic fallout showed them that the conventional way of constructing portfolios may be flawed. The co-founder of Gold Bullion International – Dan Tapiero – believes that shortages of Bitcoin are very much possible as the digital currency is accumulated en-masse. He said:

“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 held off mkt in squeeze. Shorts will be dead. Price can go to any number.

Many Are Expecting Bitcoin Shortages

Bitcoin shortage sounds unlikely, but many people believe it would eventually happen. Light – a pseudonymous digital currency trader – recently said that BTC is in the midst of a “sell-side liquidity crisis” as retail and institutional investors accumulate the coin en-masse. The trader said:

“Bitcoin is experiencing the beginnings of a sell-side liquidity crisis. It has always been like oil on crack. Production is entirely inelastic, demand meanwhile, is reflexive.”

However, no one knows when an inflection point would be reached where supply will no longer be able to meet demand, but many believe that time would come. When that happens, the price of bitcoin would experience a major turnaround, and it would continue hitting new highs.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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