The prospect of the 2024 Bitcoin halving has stirred vigorous discussions within the virtual currency realm, with some arguing that the event could potentially energize the currency’s price. CryptoQuant, however, is standing at the opposite pole of this debate. The analytics firm argues that the bitcoin halving’s sway over the cryptocurrency’s price has been notably diminishing.
Elaborating on their verdict, CryptoQuant disclosed that the highly anticipated halving gathering no longer signifies a pivotal catalyst that could trigger a bullish momentum for bitcoin. The firm’s conclusions stems from the premise of their latest research findings, which contend that the yeast of expectation regarding a price surge in the aftermath of the scheduled April Bitcoin halving event, widely held by crypto analysts and investors, could essentially fall flat.
In a dynamic shift of perception, the analytics firm insinuates a dwindling effect of the Bitcoin halving event over time. They assert that recent thrusts in price and the signals for a potential bullish sprint are mainly stem from new market dynamics rather than the halving event.
In a striking reveal, CryptoQuant holds that the demand dynamics for Bitcoin have altered palpably. According to Julio Monero, Head of Research at CryptoQuant, the demand for Bitcoin, particularly from long-term and large-scale investors also known as ‘whales’, is gaining traction as one of the prime factors nudging the bitcoin price upwards.
Monero revealed a groundbreaking development in crypto space; that for the first time in the chronology of Bitcoin, the demand from persistent holders has recently eclipsed issuance. CryptoQuant’s report further shed light on a significant 11% month-on-month surge in large-scale Bitcoin investors, those holding between 1000 to 10,000 BTC, thus reaching unparalleled levels. This surge in demand is in stark contrast to BTC’s supply trends and could pave the way for elevated demand after the halving event concludes.
Presently, long-term holders of Bitcoin are amassing more tokens than new entrants in the market. This trend, underscored by the revelation that long-term holders add as much as 200,00 BTC to their portfolio each month while accumulating seven times more BTC per month, points to a key market shift. The firm wrote, “We argue that the effect of the halving has been diminishing, as the new issuance of Bitcoin gets smaller relative to the amount of Bitcoin selling from long-term holders.”
Despite Bitcoin’s supply and demand dynamics presented by CryptoQuant, a flock of analysts continue to harbor an optimistic outlook, expecting a marked upswing in Bitcoin’s price post-halving. Analysts like Joe Consorti are forecasting BTC’s price to leap to $100,000 post the Bitcoin halving and expect a potential bullish rally for the cryptocurrency during this period.
Historical trends showing a correlation between the Bitcoin halving event and price surge have spurred several crypto investors to predict a similar bullish future for the cryptocurrency this year.
A recent record indicates a surge in Bitcoin’s open interest, shattering previous records and soaring above $18 billion. This number suggests that investors remain largely bullish on Bitcoin’s future value, regarding any dips in price as buying opportunities in anticipation of a future rally. To add further intrigue to the dialogues surrounding the halving event, bitcoin bulls are losing out to bears in the current market scenario, as revealed by a Bitcoin price chart.