Bitcoin Whales Make Waves as Halving Approaches: Demand Outpaces Supply
Summary:
As the fourth Bitcoin (BTC) halving event approaches, "whales" or large-scale holders of the cryptocurrency are reportedly acquiring significant quantities of BTC. This growth in demand is exceeding the supply of new Bitcoin, indicating that current mining outputs can't meet investor demand - a trend expected to intensify after halving. The halving event, which will reduce the block reward down to 3.125 BTC, is predicted to cause a surge in value due to declining supply and increasing demand. This accumulation phase by whales suggests a bullish market sentiment, with prominent BTC holders moving assets into cold storage in anticipation of a rise in prices.
We are closing in on the fourth halving date for Bitcoin (BTC), an event that has seen substantial BTC purchases by whales in the preceding week. This significant cryptocurrency event will slice the block reward to 3.125 BTC, and the increasing acquisition by whales reflects a positive market outlook. Data from the crypto analytics company, CryptoQuant, reveals an unparalleled demand from Bitcoin whales. For the first time, the request from "permanent holders" is outpacing the supply of new Bitcoin. This suggests that the present quantity of new Bitcoin from mining isn't sufficient to meet demand from investors. This deficiency is predicted to intensify following the Bitcoin halving.
The surge in BTC whale demand, combined with spot Bitcoin inflows, is expected to exert an upswing on the top cryptocurrency's value. Over the medium to long term, this rising trend could potentially raise Bitcoin's worth even higher.
The Bitcoin halving event is a crucial happening in the crypto world, regularly marked by an enthusiastic price response both before and after the event. In the past, bull runs have launched months ahead of the halving, precipitated by the anticipation of a declining BTC supply. The aftermath of halving sees prices escalating dramatically, courtesy of the shrinking supply and the growing imbalance between supply and demand.
Bitcoin halving also affects miners entrusted with transaction verification and the addition of new blocks to the blockchain. Each halving trims the BTC reward for miners by half, thereby hiking the cost of mining new BTC. As a result, Bitcoin prices have to reach a specific threshold to enable miners to maintain their operations.
At present, mining one Bitcoin costs roughly $49,000, a venture that remains profitable with Bitcoin's current trading price around $70,000. However, post-halving, the BTC price must breach the $80,000 mark for miners to break even.
The phase of whale accumulation is an optimistic indicator for the crypto market, suggesting that major BTC holders are shifting their assets to cold wallets, forecasting a subsequent price surge.
Published At
4/12/2024 1:44:21 PM
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