Amidst the significant shifts in the cryptocurrency market following Bitcoin‘s halving, Bitfinex offers reassuring insights to investors. Their analysis reveals that Bitcoin’s market conditions have stayed favorable post-halving, as evidenced by their examination of on-chain data. Despite the economic instability in the United States, as indicated in Bitfinex’s Alpha report published on April 22, they identify optimistic signs for Bitcoin’s continued growth.
Bitcoin Market Dynamics Remains Bullish
Based on reports from a cryptocurrency exchange in Hong Kong, the number of Bitcoin withdrawals from the platform is as high as it has been since early 2023. This suggests that many investors are moving their Bitcoins to offline wallets, likely in anticipation of price increases.
Additionally, the observation was made that long-term investors’ heavy selling hasn’t led to the typical price drop before a Bitcoin halving event. This implies that new investors are effectively buying up the sellers’ offerings, demonstrating the current market’s resilience.
The Bitfinex research found that on average, Bitcoin ETFs added $150 million to spot markets each day. Since the daily creation of new Bitcoins is only around $30-$40 million post-halving, this noticeable discrepancy between supply and demand could potentially boost Bitcoin’s price even further.
Bitfinex suggests that the significant buying of Bitcoin spot ETFs, which have shaped the market conversation this year, could potentially decrease. Nevertheless, recent data on ETF withdrawals hints at a possible leveling off in demand for these products.
The Halving event that just took place reduced miners’ rewards from 6.25 Bitcoins to 3.125 Bitcoins. Consequently, miners are adapting their mining strategies to keep going in the face of this reward decrease post-Halving.
In simpler terms, the amount of Bitcoin being transferred from miners to exchanges has dropped noticeably. This might mean that they’re either offloading their Bitcoins beforehand or using them as collateral for upgrades. As a result, there could be a steady rise in selling pressure instead of a sharp price decline around the Bitcoin Halving event.
New BTC Whales Surpassed Old Whales
After the end of the fourth Bitcoin Halving, there has been a noticeable increase in new large-scale Bitcoin investors, according to on-chain data. This information was shared by Ki Young Ju, CEO of CryptoQuant, who pointed out that these new investors have initially invested almost twice as much in Bitcoin as the old whales had collectively.
Based on the information available, the collective value of Bitcoin held by the new, short-term investors amounts to an impressive $110.6 billion. In contrast, the old, long-term investors hold approximately $67 billion worth of Bitcoin. This shift in investor demographics could potentially influence Bitcoin’s future trend and have far-reaching implications for the entire cryptocurrency market landscape.
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2024-04-23 18:04