Demand from Whales and Long-Term Holders
CryptoQuant analysts have found that the upcoming Bitcoin halving in April is no longer the main factor driving the price of BTC. Instead, demand from large-scale investors (whales) and long-term holders is now the primary force pushing the price up.
Permanent Holders Outpacing Issuance
For the first time ever, permanent Bitcoin holders are buying more tokens than new investors entering the market. They’re adding around 200,000 BTC to their portfolios each month, while long-term holders are amassing seven times more BTC per month.
Halving Influence Diminishing
CryptoQuant argues that the halving’s effect on price is decreasing as the new supply of Bitcoin becomes smaller compared to the amount of Bitcoin being sold by long-term holders.
Analysts Still Optimistic
Despite CryptoQuant’s findings, some analysts still expect a significant price increase after the halving. They point to historical trends and the recent surge in open interest in Bitcoin futures as evidence of continued bullish sentiment.
