CryptoQuant analysts have revealed that the influence of the Bitcoin halving in 2024 on the price of BTC has fallen significantly. According to the crypto analysis company, the long awaited halving is no longer the main driver of bullish momentum in BTC.
Bitcoin’s halving effects on prices are fading
CryptoQuant wrote in a recent research report that the upcoming Bitcoin halving event scheduled in April may not produce the desired results price shock expected by most crypto analysts and investors in the space.
According to the analytics firm, the impact of Bitcoin’s halving has diminished over time, with the cryptocurrency’s price and a potential bullish rally driven by a new change in market dynamics.
Notably, CryptoQuant revealed that demand from long-term and large-scale investors, whales, has become one of the main factors pushing up the price of BTC. The head of research at CryptoQuant, Julio Monero revealed on Tuesday, April 9, it appears that the demand for Bitcoin is decreasing permanent holders recently surpassed issuance for the first time in history.
In its report, CryptoQuant also highlighted an 11% month-over-month increase on a large scale Bitcoin Investors owning between 1,000 and 10,000 BTC, reaching unprecedented levels. This increased demand is in stark contrast to BTC’s supply dynamics and is expected to increase further after the halving ends.
Currently long term Bitcoin holders collect more tokens than the new investors entering the market. CryptoQuant revealed that permanent holders have added as much as 200,000 BTC to their portfolio every month, while long-term holders accumulate seven times more BTC per month.
“We argue that the effect of the halving has diminished as new issuance of Bitcoin becomes smaller relative to the amount of Bitcoin sold by long-term holders,” the analytics firm wrote.
Analysts remain optimistic about halving influence
Despite CryptoQuant’s report on Bitcoin supply and demand dynamics, numerous analysts still expect a significant increase in Bitcoin’s price after the halving event. Analysts love Joe Consorti have predicted that the price of BTC will rise to $100,000 after the Bitcoin halving. Furthermore, he has expressed optimism about a potential bullish rally for the cryptocurrency during this period.
Moreover, because of historical trends Several crypto investors have revealed a link between Bitcoin’s halving and a price increase for the cryptocurrency predicted a similarly bullish outlook for the cryptocurrency this year.
Recently, open interest in Bitcoin rose to new all-time highs above $18 billion. This increase suggests that traders and investors are still optimistic about Bitcoin’s future value given any price declines purchasing options before a possible rally.
BTC bulls lose out to bears | Source: BTCUSD on Tradingview.com
Featured image from Earth.org, chart from Tradingview.com
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