The latest analysis from CryptoQuant suggests that the long-anticipated 2024 Bitcoin halving may not have the significant impact on the price of BTC as previously expected. The analytics firm points out that the influence of the halving event has been dwindling over time, with other market dynamics now playing a more crucial role in driving bullish momentum in Bitcoin.
According to CryptoQuant, the demand from long-term and large-scale investors, commonly known as whales, has become one of the primary factors pushing the price of BTC upward. The Head of Research at CryptoQuant, Julio Monero, stated that the demand for Bitcoin from permanent holders has surpassed issuance for the first time in history. This shift in dynamics is reshaping the way we perceive the impact of the halving event on Bitcoin’s price.
The report from CryptoQuant also reveals a significant increase in large-scale Bitcoin investors holding between 1,000 to 10,000 BTC, reaching unprecedented levels. This surge in demand from long-term holders is likely to continue even after the halving event concludes. Permanent holders are currently accumulating more tokens than new investors entering the market, with some adding as much as 200,000 BTC to their portfolio every month. Long-term holders, on the other hand, are amassing seven times more BTC per month.
As stated by the analytics firm, “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.” This shift in investor behavior is reshaping the way we interpret the impact of the halving event on Bitcoin’s price trajectory.
Despite CryptoQuant’s analysis, which suggests a diminishing impact of the halving event on BTC price, several analysts still anticipate a significant uptick in Bitcoin’s price post-halving. Analysts like Joe Consorti have predicted a price target of $100,000 for Bitcoin following the halving event, expressing optimism about a potential bullish rally. Additionally, historical trends suggest a correlation between the halving event and a price surge for Bitcoin, further fueling bullish sentiment among crypto investors.
Recent data showing a surge in open interest in Bitcoin to new all-time highs above $18 billion indicates that traders and investors remain bullish on Bitcoin’s future value. Any price dips are viewed as buying opportunities before a potential rally, reflecting the conflicting views in the market regarding Bitcoin’s price trajectory post-halving.
While the 2024 Bitcoin halving event continues to be a major focal point for the crypto community, the diminishing influence of this event on Bitcoin’s price is becoming increasingly apparent. The changing dynamics in the market, particularly the shift in demand from long-term holders, are reshaping the narrative around the halving event and its impact on Bitcoin’s price trajectory. As we move closer to the halving event, it will be interesting to see how these changing dynamics play out and the implications they have on Bitcoin’s price in the long run.
Crypto investors are advised to conduct their own research and exercise caution when making investment decisions, as the market dynamics continue to evolve and present new challenges and opportunities.
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