CryptoQuant’s analysis team has shared new insights: the upcoming 2024 Bitcoin halving seems to have less impact on Bitcoin‘s price than previously assumed. The halving, which typically brings bullish market trends, now appears to be a lesser factor influencing BTC‘s surge in value.
Bitcoin Halving Effects On Prices Is Fading
According to a study published by CryptoQuant, the anticipated Bitcoin halving, due in April, might not bring about the significant price surge that many cryptocurrency experts and market participants are hoping for.
Based on data from the analytics company, the impact of Bitcoin’s halving event on its price has been decreasing. Instead, recent price increases and possible bull markets for Bitcoin may be caused by shifts in market conditions.
Significantly, CryptoQuant revealed that the interest from long-term and substantial investors, referred to as “whales,” is now a major driver of Bitcoin’s price increase. According to the Head of Research at CryptoQuant, Julio Monero, announced on April 9, the demand for Bitcoin from long-term holders surpassed its issuance rate for the first time ever.
According to CryptoQuant’s latest report, there has been a significant rise of 11% monthly among Bitcoin investors owning between 1,000 and 10,000 coins. This group now holds a record amount of Bitcoin. This surge in demand stands out against the backdrop of Bitcoin’s supply situation and is expected to intensify following the halving event’s completion.
At present, Bitcoin owners who plan to hold the cryptocurrency for a prolonged period are buying more tokens than those just entering the market. According to CryptoQuant’s data, permanent holders have been adding approximately 200,000 BTC each month to their stash, while long-term holders have been acquiring around seven times that amount every month.
“The impact of Bitcoin’s halving has been decreasing, according to our analysis. This is due to the fact that the volume of newly issued Bitcoins is shrinking compared to the quantity of Bitcoin being sold by long-term owners.”
Analysts Remain Optimistic About Halving Influence
Although CryptoQuant’s analysis suggests that Bitcoin’s price may not surge immediately after the halving event based on supply and demand dynamics, many analysts remain hopeful for substantial price growth. For instance, Joe Consorti anticipates Bitcoin reaching a price of $100,000 post-halving and is optimistic about an upcoming bullish rally for the cryptocurrency.
In addition, the historical pattern of Bitcoin’s price increase following a halving event has led some crypto investors to anticipate a price rise for the digital currency in 2021.
Lately, the public’s curiosity about Bitcoin hit record levels, exceeding $18 billion in open interest. Such a rise indicates that market participants remain optimistic regarding Bitcoin’s worth, considering temporary price decreases as potential purchasing moments prior to an anticipated upswing.
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2024-04-10 18:05