In a recent market report from Bitfinex, it's revealed that the supply of Bitcoin has begun to tighten following the recent halving event. The price of Bitcoin saw a notable increase, reaching $67,200 before stabilizing around $66,200 during the mid-London session on Tuesday.

The surge in Bitcoin's price has also influenced the prices of other cryptocurrencies, with altcoins like XRP and NEAR experiencing gains. This increase in demand for Bitcoin comes at a time when the supply on centralized exchanges has significantly decreased, a trend unseen in previous halving events. Despite the reduction in block rewards for miners, they have continued to hold onto their Bitcoin supply.

The approval of spot Bitcoin ETFs in Hong Kong and the growing interest from institutional investors are contributing to the heightened demand for Bitcoin. Additionally, nation-states like El Salvador are accumulating Bitcoin, further reducing the available supply.

Bitfinex analysts predict that selling pressures on Bitcoin will decrease to around $30 million following the halving event. When combined with the daily average spot Bitcoin cash inflows of approximately $150 million, this creates a significant supply-demand shock. On-chain data also indicates a surge in Bitcoin outflows from exchanges as investors anticipate further price increases.

Despite fluctuations between $74k and $60k in recent months, Bitcoin's price could continue to range, according to analyst MichaÃ«l van de Poppe. The monthly Relative Strength Index (RSI) suggests similarities between the current bull cycle and the crypto bubble of 2016-2017, indicating potential further growth for Bitcoin.

In conclusion, Bitcoin's price surge to $67,200 reflects growing demand and tightening supply dynamics following the recent halving event. With institutional interest and decreasing selling pressures, Bitcoin's price may continue to see upward momentum in the coming months.