Growth in demand for Bitcoin signals momentum for higher prices after halving

The push for higher prices after the Bitcoin (BTC) halving has found a strong basis in the growth in demand for the largest cryptocurrency on the market, observing previous cycles of the event, as noted by the platform specializing in cryptocurrency analysis, CryptoQuant, on 9 April.

The halving event reduces 50% of the block reward that miners receive, a measure introduced by Satoshi Nakamoto, the creator of Bitcoin, to moderate cryptocurrency inflation. By reducing mining rewards, the intention is to reduce the rate of generation of new Bitcoins, increasing their scarcity and, consequently, their value, especially under growing demand. The Bitcoin halving will take place in a few days.

According to the analysis, observing the pattern recorded in previous cycles, the growth in demand for Bitcoin from BTC whales skyrocketed, driving up prices. Currently, demand growth is the highest, according to data.

“Growing demand for $BTC appears to be one of the main drivers of higher prices after the halving. In previous cycles, demand growth for Bitcoin from large holders/whales has skyrocketed, fueling price increases. Currently, demand growth is the highest ever (11% in monthly terms)”.

$BTC demand growth seems to be a major driver of higher prices post-halving.

In past cycles, #Bitcoin demand growth from large holders/whales (violet area) has spiked, fueling the price rally.

Currently, demand growth is around the highest ever (11% MoM). pic.twitter.com/PefL54jPlC

— CryptoQuant.com (@cryptoquant_com) April 9, 2024

It is worth remembering that, in a very significant development in the world of cryptocurrencies, whales of the largest cryptocurrency accumulated 1.4% of the total supply of Bitcoin in the first quarter of the year. The move suggests a price rise is near, according to recent analysis shared by the Santiment platform.

According to the survey, large holders who own between 100 and 100 thousand BTC tokens accumulated a total of 319,310 BTC in the first three months of the year.

At the time of publication, the price of Bitcoin was quoted at US$67,942.77, down 4% in the last 24 hours.

Disclaimer:

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