The analysts at CryptoQuant have recently released a report indicating that the much-anticipated Bitcoin halving event in 2024 may no longer hold the same level of influence over the price of BTC as it once did. The report suggests that while the halving event was previously a key driver for bullish momentum in Bitcoin, other factors are now coming into play. Specifically, the demand from long-term and large-scale investors, commonly referred to as whales, has emerged as a significant force pushing the price of BTC upwards.
According to the report, long-term Bitcoin holders are accumulating more tokens than new investors entering the market. This shift in behavior has resulted in an 11% month-on-month increase in large-scale Bitcoin investors holding between 1,000 to 10,000 BTC, reaching unprecedented levels. In fact, permanent holders have been adding as much as 200,000 BTC to their portfolios every month, significantly outpacing the issuance of new Bitcoin.
The report goes on to suggest that the effect of the halving event on Bitcoin’s price has been diminishing over time. As the amount of Bitcoin being sold by long-term holders surpasses the new issuance of Bitcoin, the halving event may have a less pronounced impact on the cryptocurrency’s price. This marks a significant shift in the market dynamics surrounding Bitcoin and raises questions about the traditional belief in the halving event as a price driver.
While CryptoQuant’s report paints a picture of shifting trends in the Bitcoin market, there are still analysts who hold optimistic views on the cryptocurrency’s future. Some analysts, such as Joe Consorti, have predicted that Bitcoin’s price could rise to $100,000 following the halving event. These predictions are based on historical trends that suggest a correlation between the halving event and a subsequent price surge for Bitcoin.
Despite conflicting opinions on the impact of the halving event, market sentiment towards Bitcoin remains bullish. The recent surge in open interest in Bitcoin futures, reaching new all-time highs above $18 billion, indicates that traders and investors are still optimistic about Bitcoin’s future value. This suggests that any price dips are being seen as buying opportunities before a potential rally in the cryptocurrency.
The influence of the Bitcoin halving event on price predictions may be diminishing, as indicated by the findings of CryptoQuant’s report. While some analysts remain optimistic about Bitcoin’s future price potential following the halving event, the changing dynamics in the market suggest a shift away from reliance on the halving event as the primary price driver. Investors and traders are advised to conduct their own research and carefully consider the evolving market dynamics before making any investment decisions.