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Swiss Banking Titan Signals Bullish Bitcoin Future as Institutional Interest Grows

As Bitcoin (BTC) inches closer to its all-time high of $111,000, experts predict that its bullish trajectory may persist.

Sygnum Bank, a prominent Swiss financial institution, has emphasized the rising institutional interest in Bitcoin in its latest report.

With Bitcoin's circulating supply rapidly diminishing, analysts suggest this could set the stage for significant price increases amid growing demand.

The dwindling supply is primarily attributed to potent institutional interest and the proliferation of Bitcoin acquisition vehicles, such as ETFs and corporate treasury strategies.

Since late 2023, about one million BTC have exited exchanges, a trend viewed positively for Bitcoin's market value.

According to banking analysts, “Over the past 18 months, Bitcoin’s liquidity has decreased by 30% due to expanding institutional adoption and emerging investment products.”

This decrease in liquid supply is believed to foster demand shocks, leading to higher volatility in Bitcoin's price.

Further bolstering this optimism are recent legislative moves by several U.S. states to permit strategic Bitcoin reserves, with other countries like Pakistan also considering BTC holdings.

Sygnum noted that while official purchases are yet to commence, the anticipation surrounding them could significantly impact Bitcoin’s price dynamics.

With their forecast, Sygnum analysts contend that Bitcoin now presents a more favorable outlook for upside potential compared to its previous downside risks.