Bitcoin Supply Shock Coming, Trust Your Instincts- Samson Mow

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.

Bitcoin prices have fallen below the $96,000 level despite continuous buying from top pro-Bitcoin firms, leaving many wondering about the next move for the coin.

Samson Mow, the former CSO of Blockstream, has shared his thoughts on the matter, suggesting that the limited supply of Bitcoin is causing the market to behave irrationally.

“I often see people asking the question ‘if everyone is buying and there’s no supply, then why is the price going down?,’” wrote Mow in a post on X.

“It’s just the market behaving irrationally with what limited #Bitcoin supply is left. Trust your instincts. The supply shock is coming.”

Earlier this week, MicroStrategy announced that it had purchased another $1.5 billion worth of Bitcoin, increasing its total holdings to 439,000 BTC.

Other smaller firms with Bitcoin treasuries, including MARA Holdings, also announced major purchases this week, effectively depleting the coin’s circulating supply.

Despite this buying, the market has not moved past the $108,000 level and has failed to maintain support around the $100,000 mark.

According to Samson Mow, investors should trust their instincts and understand that a “supply shock is coming.”

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 $95,243.24.

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.