Bitcoin Whales Are Accumulating BTC
12 Apr, 2024 ● Coin news
As the upcoming Bitcoin halving draws near, there has been a notable increase in BTC purchases by whales in the past week.
With the fourth Bitcoin halving just around the corner — set to decrease the block reward to 3.125 BTC — the enthusiasm among whales suggests a positive outlook for the market.
CryptoQuant, a crypto analytics firm, has observed that the current surge in whale demand for Bitcoin is unprecedented.
For the first time, the demand from "permanent holders" has surpassed the available market supply of newly mined Bitcoin.
This shortage is expected to deepen following the halving event, as the rate of Bitcoin production declines.
This heightened interest from BTC whales, combined with increased spot market inflows, is likely to exert upward pressure on Bitcoin’s price.
Over time, this dynamic could significantly enhance Bitcoin's value.
The Bitcoin halving event is a significant occasion in the cryptocurrency world, typically associated with dramatic price fluctuations both before and after the event.
Traditionally, Bitcoin has seen bull runs initiating months prior to a halving, driven by expectations of a tighter supply.
After the halving, the reduced supply and the growing demand imbalance have historically led to substantial price increases.
BTC halvings also have a direct effect on miners, who verify transactions and add new blocks to the blockchain.
Each halving event reduces their earnings per block by half, raising the operational costs of mining new Bitcoin.
Consequently, Bitcoin prices need to reach certain levels to keep mining economically viable.
At present, it costs approximately $49,000 to mine one Bitcoin, with current market prices around $70,000 making mining profitable.
However, for mining to remain feasible post-halving, Bitcoin prices need to surpass $80,000.
The current phase of whale accumulation highlights the bullish sentiment in the crypto market, as major BTC holders are transferring their assets to cold storage in anticipation of future price increases.
Sources:
https://cointelegraph.com/news/bitcoin-whales-accumulation-phase-btc-halving-week-away
