Kong Jianping, former co-chair of the board of Bitcoin (BTC) mining company Canaan Technology and founder and chairman of Nano Labs, shared a noteworthy assessment regarding Bitcoin pricing.
According to Jianping, the main force driving Bitcoin’s rise is evolving into a structure different from previous cycles.
Kong Jianping stated that past bull markets followed a fairly clear path, explaining that price increases occurred through “cognitive diffusion.” He argued that in this process, adoption spread sequentially from tech enthusiasts and software developers to individual investors and ultimately to mainstream financial circles, with each stage creating new buyers and driving the price upwards.
However, according to Jianping, the picture changed after 2024. The introduction of Bitcoin ETFs and the increasing share of institutional investors fundamentally transformed the supply-demand balance. Some of the Bitcoins in circulation began to transform into “dormant” assets that do not participate in short-term buying and selling cycles. Jianping likened this situation to gold entering the balance sheets of central banks, stating that assets locked up for a long time reduce the number of sellers in the market.
Kong Jianping argues that with this transformation, the main factor driving Bitcoin’s price upwards is no longer new narratives or beliefs, but the de facto shrinking of supply, suggesting that the next upward wave could occur “without needing a new trend.”
According to the analyst, as the amount of tradable Bitcoin in the market decreases, the upward pressure on the price becomes more structural.
*This is not investment advice.
