Samson Mow on Bitcoin Crash: ‘Supply Shock Is Coming’
Thus far this week, the crypto market has tasted two extreme sides of price movement, with Bitcoin soaring to an all-time high (ATH) above $108,000 while dropping as low as $95,587.68. The week also saw a massive accumulation streak from top pro-Bitcoin firms. Despite this trend, Bitcoin prices still fell off, and Samson Mow has broken the silence on what is happening.
Bitcoin supply shock coming
In a post on X, Samson Mow noted that he often sees people asking why the price of Bitcoin has continued to fall despite everyone buying, and there is no supply. In response, he said the events of this past month are just the market behaving irrationally with the limited supply of Bitcoin.
I often see people asking the question “if everyone is buying and there’s no supply, then why is the price going down?”
It’s just the market behaving irrationally with what limited #Bitcoin supply is left.
Trust your instincts. The supply shock is coming.
— Samson Mow (@Excellion) December 20, 2024
Earlier this week, MicroStrategy bought another $1.5 billion worth of Bitcoin to increase its total holdings to 439,000 BTC. Beyond MicroStrategy, other smaller firms with Bitcoin treasuries, including MARA Holdings, also announced major purchases, effectively depleting the coin’s circulating supply.
Amid this buy-ups, the market has not moved past the $108,000 level; rather, it has failed to maintain support around the $100,000 mark.
In his reaction, Samson Mow said investors need to trust their instincts and understand that a “supply shock is coming.”
Imminent BTC price recovery
Whenever MicroStratey announces a Bitcoin purchase, as it has done over the past six weeks, market traders find a way to rebalance their pricing to its average purchase price. While it remains uncertain if another purchase will be unveiled in the coming week, the market is likely to rebalance ahead of the potential buy-up announcement.
As of writing time, the price of Bitcoin has dropped 3.54% in 24 hours to $95243.24. Amid the ongoing freefall, the coin is bound to see a major retest of this level, as it has formed a strong support around this price range over the past month.
