Bitcoin's Surge in Demand Takes Center Stage
As we approach the next Bitcoin halving, it's clear the market dynamics are evolving. Traditionally, halvings have signaled potential price increases as the rate of new Bitcoin entering circulation is halved. However, the impact of these events may be lessening as these new issuances become a smaller fraction of the total available Bitcoin.
Key Observations
• Diminishing Impact: The influence of halvings on Bitcoin's price is reducing over time as the effect of new Bitcoin issuance decreases in significance compared to activities by long-term holders.
• Whale Activity: Demand from large Bitcoin holders (whales) has surged, recording an 11% increase month-over-month – the highest ever.
• Permanent Holders: The acquisition of Bitcoin by permanent holders is now outpacing the rate of new Bitcoin being mined, indicating a robust demand-driven market.
Forward Outlook
The shift in dynamics suggests that demand factors, driven by both whales and long-term holders, are becoming increasingly pivotal compared to traditional supply cuts. See our real-time dashboard for all the demand trends.
Live Dashboard | @cryptoquant_official
As we approach the next Bitcoin halving, it's clear the market dynamics are evolving. Traditionally, halvings have signaled potential price increases as the rate of new Bitcoin entering circulation is halved. However, the impact of these events may be lessening as these new issuances become a smaller fraction of the total available Bitcoin.
Key Observations
• Diminishing Impact: The influence of halvings on Bitcoin's price is reducing over time as the effect of new Bitcoin issuance decreases in significance compared to activities by long-term holders.
• Whale Activity: Demand from large Bitcoin holders (whales) has surged, recording an 11% increase month-over-month – the highest ever.
• Permanent Holders: The acquisition of Bitcoin by permanent holders is now outpacing the rate of new Bitcoin being mined, indicating a robust demand-driven market.
Forward Outlook
The shift in dynamics suggests that demand factors, driven by both whales and long-term holders, are becoming increasingly pivotal compared to traditional supply cuts. See our real-time dashboard for all the demand trends.
Live Dashboard | @cryptoquant_official
Back to December 2020
“It seems there is room for a more significant rise in this cycle as liquidity expands with the increasing greed of STHs and experienced investors gradually realizing their profits.” – Link
By Gustavo Faria | @cryptoquant_official
“It seems there is room for a more significant rise in this cycle as liquidity expands with the increasing greed of STHs and experienced investors gradually realizing their profits.” – Link
By Gustavo Faria | @cryptoquant_official
Bitcoin recently dropped from $71k to $65k.
If the correction persists, keep an eye on key metrics like traders' unrealized profit margins and the realized price.
These have signaled weakness since late March.
Live Dashboard | @cryptoquant_official
If the correction persists, keep an eye on key metrics like traders' unrealized profit margins and the realized price.
These have signaled weakness since late March.
Live Dashboard | @cryptoquant_official
Bitcoin Price Above STH Whales' Realized Price
“This indicates strong demand for Bitcoin, while also highlighting the greater returns of long-term investment.” – Link
By tugbachain | @cryptoquant_official
“This indicates strong demand for Bitcoin, while also highlighting the greater returns of long-term investment.” – Link
By tugbachain | @cryptoquant_official
Why is there still a high probability of more price correction in Bitcoin?
“The Bitcoin price has risen by more than 300% since the last time the market was discounted, and in all the brief 20% corrections along the way there hasn't been a premium period like now.” – Link
By G a a h | @cryptoquant_official
“The Bitcoin price has risen by more than 300% since the last time the market was discounted, and in all the brief 20% corrections along the way there hasn't been a premium period like now.” – Link
By G a a h | @cryptoquant_official
Pre-Halving Price Fluctuations
“It's essential to recognize that before each halving cycle, there's typically a price collapse, a pattern we've highlighted numerous times in the past.” – Link
By Tarekonchain | @cryptoquant_official
“It's essential to recognize that before each halving cycle, there's typically a price collapse, a pattern we've highlighted numerous times in the past.” – Link
By Tarekonchain | @cryptoquant_official
Why Should You Be Cautious? feat. MVRV
“The market is still at an MVRV level of 2.23, which is more than double the average on-chain purchase price. If a similar pattern to the past occurs, a correction of around -20% is possible.” – Link
By CoinLupin | @cryptoquant_official
“The market is still at an MVRV level of 2.23, which is more than double the average on-chain purchase price. If a similar pattern to the past occurs, a correction of around -20% is possible.” – Link
By CoinLupin | @cryptoquant_official
Bitcoin in Accumulation Phase Ahead of Halving
Bitcoin withdrawals from exchanges have reached their highest level since January 2023, suggesting a major phase of accumulation. Alongside this, market metrics indicate a recent cool-off following a 10% price drop last week, pointing to potential for upcoming price increases.
CryptoOnchain highlights that the increase in Bitcoin withdrawals might be in preparation for the expected halving on April 20, often linked with anticipatory holding for price gains.
Burak Kesmeci notes a decrease in open interest on derivatives exchanges from $18 billion to $14.2 billion, indicating less leveraged trading and possibly leading to market stabilization.
CoinLupin points out that Bitcoin is now in the Short-Term Holder Spent Output Profit Ratio (STH SOPR) support zone, offering a potential buying opportunity as short-term holders start to sell, historically preceding price rises.
Live Dashboard | @cryptoquant_official
Bitcoin withdrawals from exchanges have reached their highest level since January 2023, suggesting a major phase of accumulation. Alongside this, market metrics indicate a recent cool-off following a 10% price drop last week, pointing to potential for upcoming price increases.
CryptoOnchain highlights that the increase in Bitcoin withdrawals might be in preparation for the expected halving on April 20, often linked with anticipatory holding for price gains.
Burak Kesmeci notes a decrease in open interest on derivatives exchanges from $18 billion to $14.2 billion, indicating less leveraged trading and possibly leading to market stabilization.
CoinLupin points out that Bitcoin is now in the Short-Term Holder Spent Output Profit Ratio (STH SOPR) support zone, offering a potential buying opportunity as short-term holders start to sell, historically preceding price rises.
Live Dashboard | @cryptoquant_official
Bitcoin Inflows to Accumulation Addresses
“Bitcoin inflows to the Accumulation Addresses hit a new all-time high of 27.7k BTC yesterday.” – Link
By IT Tech | @cryptoquant_official
“Bitcoin inflows to the Accumulation Addresses hit a new all-time high of 27.7k BTC yesterday.” – Link
By IT Tech | @cryptoquant_official
Derivative Uncertainty
“If the price breaks below $60,000, we might witness a decline to $52,000 before a subsequent rise.” – Link
By ShivenMoodley | @cryptoquant_official
“If the price breaks below $60,000, we might witness a decline to $52,000 before a subsequent rise.” – Link
By ShivenMoodley | @cryptoquant_official
Learn how Bitcoin miners are preparing for reduced rewards following the halving.
Dive into their strategies to remain profitable.
Join us and special guest, Bob Burnett, founder & CEO of Barefoot Mining for essential insights into Bitcoin mining!
Register Now | @cryptoquant_official
Dive into their strategies to remain profitable.
Join us and special guest, Bob Burnett, founder & CEO of Barefoot Mining for essential insights into Bitcoin mining!
Register Now | @cryptoquant_official
Miners Reduce Selling Pressure Ahead of Halving
“On average over the last month, around 374 BTC were sent daily to spot exchanges, a value well below the 1388 BTC registered in February.” – Link
By caueconomy | @cryptoquant_official
“On average over the last month, around 374 BTC were sent daily to spot exchanges, a value well below the 1388 BTC registered in February.” – Link
By caueconomy | @cryptoquant_official
Now that BTC halving is approaching, how will miners react?
“Some experts have warned that there could be significant downward pressure on the market by miners immediately after the halving. However, looking at the steady increase in outflow during 2023, it appears that miners have been covering operating costs by selling quantities from time to time.” – Link
By Yonsei_dent | @cryptoquant_official
“Some experts have warned that there could be significant downward pressure on the market by miners immediately after the halving. However, looking at the steady increase in outflow during 2023, it appears that miners have been covering operating costs by selling quantities from time to time.” – Link
By Yonsei_dent | @cryptoquant_official
The Bitcoin Halving is approaching, and BTC demand has dropped.
Let's look into the reasons for this.
Traders in the perpetual futures market are locking in gains amid increased volatility and geopolitical concerns.
Additionally, there is a noticeable slowdown in Bitcoin acquisition by large holders and ETFs, likely due to market uncertainties and upcoming structural changes from the halving.
However, the recent sell-off has reset traders’ unrealized profits, historically a signal of a potential market bottom in bull cycles.
Market participants seem to be recalibrating their positions, leading to a decrease in immediate demand and price stabilization.
See our weekly crypto report for more.
Weekly Report | @cryptoquant_official
Let's look into the reasons for this.
Traders in the perpetual futures market are locking in gains amid increased volatility and geopolitical concerns.
Additionally, there is a noticeable slowdown in Bitcoin acquisition by large holders and ETFs, likely due to market uncertainties and upcoming structural changes from the halving.
However, the recent sell-off has reset traders’ unrealized profits, historically a signal of a potential market bottom in bull cycles.
Market participants seem to be recalibrating their positions, leading to a decrease in immediate demand and price stabilization.
See our weekly crypto report for more.
Weekly Report | @cryptoquant_official