As the Bitcoin halving gets closer, whales have been buying lots of BTC over the past week. This is happening just before the fourth halving event, where the reward for mining new Bitcoins gets cut in half to 3.125 BTC. The fact that these whales are buying so much suggests they’re feeling positive about the market.
Data from CryptoQuant, a company that studies cryptocurrency trends, shows that whale demand for Bitcoin is at an all-time high. These “permanent holders” are now snapping up more Bitcoin than what’s being newly mined.
This means there’s not enough new Bitcoin being made to meet the demand from investors. And after the halving, when even fewer new Bitcoins will be produced, the scarcity will only get more intense.
Whales buying lots of bitcoin, and more people getting into it could make the price go up.
Before each halving event, a bull run usually begins several months in advance as people anticipate the reduced supply of Bitcoin. After the halving, Bitcoin’s price typically surges significantly due to the decreased supply and increased demand.
Halvings also affect Bitcoin miners, who earn less for their efforts after each halving. This makes mining Bitcoin more expensive, so Bitcoin’s price needs to rise to a certain level for miners to stay profitable.
Also Read: Bullish Bitcoin Trend Persists Despite Pre-Halving Volatility
