Analysts at CryptoQuant have found that the influence of the 2024 Bitcoin Halving The impact on the price of BTC has decreased significantly. According to the cryptoanalysis firm, that is highly anticipated halving event is no longer the main driver of bullish momentum in BTC.
The impact of the Bitcoin halving on prices is waning
CryptoQuant wrote in a recent research report that the upcoming Bitcoin halving event The delivery scheduled for this April may not deliver the desired result Price shock expected by most crypto analysts and investors in this space.
According to the analytics firm, the impact of the Bitcoin halving event has decreased over time as the price of the cryptocurrency and a potential upward rally driven by a new shift in market dynamics.
In particular, CryptoQuant announced that demand is more long-term and Major investors, whales, has become one of the main factors driving the price of BTC higher. The head of research at CryptoQuant, Julio Monero disclosed on Tuesday, April 9, that demand for Bitcoin was decreasing permanent owners recently exceeded the emissions rate for the first time in history.
In its report, CryptoQuant also highlighted an 11% increase compared to the previous month Bitcoin investors holds between 1,000 and 10,000 BTC, reaching unprecedented levels. This increased demand stands in sharp contrast to BTC's supply dynamics and is expected to continue increasing after the halving is complete.
Currently long-term Bitcoin holders are accumulating more tokens than the new investors entering the market. CryptoQuant revealed that long-term holders are adding up to 200,000 BTC to their portfolio every month, while long-term holders are accumulating seven times more BTC per month.
“We argue that the impact of the halving has diminished as the new issuance of Bitcoin becomes smaller compared to the amount of Bitcoin sold by long-term holders,” the analytics firm wrote.
Analysts remain optimistic about a halving of influence
Despite CryptoQuant's report on Bitcoin supply and demand dynamics, many analysts still expect the Bitcoin price to rise significantly Halving event. Analysts like Joe Consorti have predicted that the price of BTC will rise to $100,000 after the Bitcoin halving. Additionally, he expressed optimism about a possible upward rally for the cryptocurrency during this period.
Furthermore, due to historical trends Various crypto investors have revealed a connection between the Bitcoin halving and an increase in the price of the cryptocurrency predicted a similarly optimistic outlook for the cryptocurrency this year.
Recently, open interest in Bitcoin rose to new all-time highs of over $18 billion. This increase suggests that traders and investors are still optimistic about the future value of Bitcoin and see any price declines as likely Purchase options before a possible rally.
BTC bulls lose to bears | Source: BTCUSD on Tradingview.com
Featured image from Earth.org, chart from Tradingview.com
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