The Bitcoin market has seen a wave of accumulation as institutional investors continue to acquire more coins, strengthening both short and long-term positions. This trend has been accelerated by the recent banking crisis in the United States and other countries, leading prominent entities such as MicroStrategy Inc., Tether USDT, and Tesla Inc. have increased their Bitcoin acquisition rates. Tesla, led by Elon Musk, has notably held onto its substantial Bitcoin holdings of about $184 million over the past two quarters.
Institutional demand rises ahead of Bitcoin’s halving
Amid this rising institutional demand, the market is anticipating the upcoming fourth Bitcoin halving, scheduled for approximately April 27, 2024. Historically, Bitcoin halving events have led to significant bull markets within the crypto space, often a few months after the halving has taken place. occurred.
Analyst predicts negative exchange rate balance
According to James V. Straten, an analyst associated with Glassnode, the upcoming Bitcoin halving is expected to result in a negative exchange rate balance for the first time. Straten points out that the Bitcoin exchange balance has already fallen below 12 percent for the second time this year.
“From April 2024, things should get interesting,” said the analyst closed.
Altcoin market is facing liquidity crisis
Liquidity within the altcoin market is highly dependent on Bitcoin, as most of the coins are linked to BTC. Consequently, as more coins are withdrawn from exchanges, the possibility of a short-term liquidity crisis increases. In addition, the continued crypto boom in the United States is expected to deplete liquidity in top digital assets, leading to increased volatility in the altcoin market.
Also Read: Popular Analyst Says Altcoin Market Is Weakening, Says PEPE Is A Sign – Coinpedia Fintech News