๐ฅHot off the press! CryptoQuant, a leading crypto market analytics platform, has shared some intriguing insights in its latest weekly report. The firm believes the impact of Bitcoin halvings on BTC's value is dwindling. ๐ฎ Why, you ask?
Well, the new issuance of BTC keeps shrinking compared to the amount being sold by long-term holders. This suggests that demand will be the key driver of prices post-halving. ๐
Let's dive deeper! ๐โโ๏ธ Bitcoin's monthly issuance has dropped to a mere 4% of the total BTC supply available. This is a stark contrast to the pre-halving periods when Bitcoin issuance represented 69%, 27%, and 10% of the available BTC supply.
Here's another fun fact: Demand from permanent BTC holders has surpassed issuance for the first time ever! ๐ These investors are adding roughly 200,000 BTC to their balances monthly, a significant leap from the 28,000 BTC issuance.
Post the Bitcoin halving on April 20, the monthly issuance will decline to approximately 14,000, leaving demand growth to drive BTC prices to higher levels. ๐
In previous cycles, demand growth from large holders and whales fueled post-halving price rallies. With the current demand growth at its highest ever, around 11% month-on-month, it's clear that this factor has been the primary catalyst behind BTC surges. ๐ณ
However, it's not all sunshine and rainbows. ๐ Analysts predict that selling pressure from OG BTC holders (those with coins 5+ years old) will increase after the halving.
So, buckle up, BTC enthusiasts! The ride might get a bit bumpy post-halving, but the long-term outlook remains optimistic. ๐๐
