As the Bitcoin (BTC) price hovers around $70,826 ahead of the impending halving, whales have been actively acquiring significant amounts of BTC in recent days. This surge in demand from whales, characterized by large holders of Bitcoin, suggests a bullish outlook in the market.
Data from crypto analytics firm CryptoQuant reveals that demand from “permanent holders” has surpassed the available market supply of new Bitcoin for the first time. This imbalance indicates that the production of new Bitcoin through mining is insufficient to satisfy the demand from cryptocurrency investors, a trend expected to intensify post-halving.
The increasing demand from BTC whales, coupled with inflows of spot Bitcoin, is likely to exert upward pressure on the price of the leading cryptocurrency. Over the medium to long term, this trend could contribute to further appreciation of Bitcoin’s value.
Bitcoin halvings are significant events in the crypto ecosystem and are typically accompanied by bullish price action. Historical data shows that bull runs often commence several months before the halving as investors anticipate the reduction in BTC supply. Following the halving, BTC prices tend to surge due to the diminished supply and widening supply-demand gap.
BTC halvings also impact miners, who are responsible for validating transactions and adding new blocks to the blockchain. With each halving, miners’ rewards are halved, increasing the cost of mining new BTC. Consequently, BTC prices must rise to a certain level to maintain profitability for miners. Currently, the average cost of mining one Bitcoin stands at approximately $49,000, suggesting profitability at the current trading price. However, post-halving, BTC prices need to surpass $80,000 for miners to remain profitable.
The accumulation of BTC by whales, evidenced by the transfer of holdings to cold wallets, is considered a bullish signal for the crypto market. It suggests that major BTC holders anticipate a price increase and are positioning themselves accordingly.
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