The analysts at CryptoQuant have shed light on the fact that the impact of the anticipated 2024 Bitcoin halving on the price of BTC has significantly decreased. In a recent research report, the crypto analytics firm highlighted that the halving event may no longer be the primary driver for a bullish trend in Bitcoin. This insight challenges the traditional thinking that the halving event always leads to a substantial price shock in the cryptocurrency market.
One of the key factors driving the price of BTC upwards, as revealed by CryptoQuant, is the increasing demand from long-term and large-scale investors, also known as whales. These investors have been accumulating Bitcoin at unprecedented levels, with a notable 11% month-on-month increase in holdings of 1,000 to 10,000 BTC. This surge in demand contrasts sharply with the supply dynamics of Bitcoin and is expected to continue growing even after the halving event.
The Head of Research at CryptoQuant, Julio Monero, highlighted that the demand for Bitcoin from permanent holders has surpassed issuance for the first time in history. This trend indicates that long-term holders and whales are playing a significant role in driving the price of BTC, overshadowing the impact of the halving event. The diminishing effect of the halving can be attributed to the decreasing new issuance of Bitcoin relative to the selling activity from long-term holders.
Despite CryptoQuant’s observations on the changing supply and demand dynamics of Bitcoin, there are still conflicting views in the market. Some analysts, like Joe Consorti, maintain an optimistic outlook on BTC’s price post-halving, predicting a rise to $100,000. Historical trends and correlations between previous halving events and price surges have also led many investors to anticipate a bullish rally for Bitcoin in the near future.
Recent data showing open interest in Bitcoin reaching new all-time highs above $18 billion indicates that traders and investors remain bullish on the cryptocurrency’s future value. This sentiment suggests that any price dips are viewed as buying opportunities before a potential rally. However, as with any investment, there are inherent risks involved, and individuals are advised to conduct thorough research before making any investment decisions.
While the 2024 Bitcoin halving event may have historically been a key driver of price increases, the current market dynamics, as outlined by CryptoQuant, indicate a shift towards a more demand-driven price movement. The influence of the halving event has diminished in the face of increasing accumulation by long-term holders and whales. Despite conflicting opinions in the market, it is essential for investors to stay informed and cautious in their decision-making processes.
