Bitcoin Market Dynamics Still Positive Post-Halving – Bitfinex Analysis
April 23 2024 - 11:00AM
NEWSBTC
In the midst of the dramatic changes that have occurred in the
cryptocurrency space after the Bitcoin halving event, Bitfinex
provides a perceptive analysis that reassures investors that the
market dynamics of BTC have remained positive in the post-halving
period. Bitfinex examines the on-chain data and finds encouraging
signs for Bitcoin in spite of the United States economy’s current
state of uncertainty in its most recent Alpha report, which was
released on April 22. Bitcoin Market Dynamics Remains Bullish
According to the Hong Kong-based crypto platform, exchange
withdrawals of Bitcoin are currently at levels not seen since
January 2023. This simply indicates that a lot of investors are
putting their assets in cold storage in expectation of price rises.
Related Reading: Bitcoin Halving: Anticipating Price Impact, Miner
Challenges, And Long-Term Outlook Also, the exchange noted that
long-term investors’ aggressive selling has not yet caused the
usual pre-halving price decline, which suggests that new market
participants are absorbing the selling pressure quite well,
highlighting the tenacity of the present market structure of
Bitcoin. The Bitfinex Alpha report revealed that the average daily
net inflow from spot Bitcoin Exchange-Traded Funds (ETFs) is $150
million. Given the ETFs’ inflows far exceeding the $30 and $40
million daily issuance rate of BTC following the halving, this
significant supply and demand imbalance could encourage further
price appreciation. Bitfinex further claims the massive purchases
of spot Bitcoin ETFs, which have dominated the entire year’s market
narrative, may decline. However, recent ETF outflows have shown
that ETF demand may be starting to stabilize. It is important to
note that the recently concluded Halving cut down miners’ reward
from 6.25 BTC to 3.125 BTC. As a result, miners are now modifying
their operating tactics in order to sustain their activities
against the decline in reward following the Halving. Thus, the
amount of Bitcoin that miners are sending to exchanges has
significantly decreased, which may indicate that they are selling
ahead of time or collateralizing their holdings to upgrade
infrastructure. Consequently, this could possibly lead to a gradual
increase in selling pressure rather than a sudden drop in value at
the Halving. New BTC Whales Surpassed Old Whales Since the
conclusion of the fourth Halving, on-chain data shows a significant
rise in new Bitcoin whales. CryptoQuant Chief Executive Officer
(CEO) Ki Young Ju, reported the development, noting that the
initial investment made by the new whales in Bitcoin is nearly
twice that of the old whales combined. Related Reading: Crypto
Expert Predicts A Narrative Shift Post-Bitcoin Halving According to
the data, the total holding by these new whales, which are
short-term holders, is valued at $110.6 billion. Meanwhile, the old
whales, which are long-term holders, own a whopping $67 billion
worth of BTC. This change in whale demographics may impact
Bitcoin’s future course and the dynamics of the cryptocurrency
landscape as a whole. Featured image from iStock, chart from
Tradingview.com
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