Adam Back’s Outlook on Bitcoin Growth

Adam Back, Blockstream founder, has made a bold statement about Bitcoin (BTC) and its potential to sustain its growth in the broader cryptocurrency market. In an update shared with the community, Back highlighted the ongoing buying pressure from exchange-traded funds (ETFs) and its impact on the coin.

Bitcoin ETF Demand Outpacing Sell Pressure

Back emphasized that the demand for Bitcoin ETFs outstrips selling pressure, predicting that strong supply-demand dynamics would soon create buy pressure, positively impacting prices.

He insisted that many players are underestimating the bullish potential this creates. He noted that once Bitcoin holders sell their BTC, they cannot sell it again.

> Some #bitcoin fundamentals data for those who aren’t bullish enough… Sellers can only sell once and the ongoing buy pressure from ETFs, treasury companies, and DCA is 4-5x the mined rate of supply, on-exchange BTC shrinking, etc., and institutions just starting. You are not bullish…
> — Adam Back (@adam3us) February 20, 2025

Furthermore, long-term institutional holders tend to accumulate and hold assets, which reduces the available supply. The daily 900 BTC mined creates an imbalance, ultimately fueling upward price pressure.

Additionally, Bitcoin is gradually shrinking across centralized exchanges, implying that investors are withdrawing their BTC to private wallets. This development has also reduced liquidity in the Bitcoin market, potentially increasing selling pressure.

Will Growing Institutional Demand Fuel Price Surge?

Back maintained that these factors would contribute to driving the value of Bitcoin in the broader cryptocurrency market. Another catalyst for Bitcoin’s price growth is the increasing institutional adoption of digital currency.

Back stated that more institutional players might embrace Bitcoin, setting the stage for increased demand. Various states in the U.S. are making legislative moves to establish a Strategic Bitcoin Reserve, which could further boost demand. Indicators suggest that hedge funds and sovereign wealth funds may play a significant role in pushing Bitcoin prices up in the coming months.

As of this writing, Bitcoin was priced at $87,325.13, reflecting a 1.3% increase in the last 24 hours.