Unlike other Bitcoin halving events, this time there is a new source of demand; Understand

Unlike other Bitcoin halving events, this time there is a new source of demand, as noted by an analysis by the IntoTheBlock platform on April 13. The analysis looked at the momentum in the industry coming from spot Bitcoin exchange-traded funds (ETFs).

As the fourth Bitcoin halving approaches, the cryptocurrency community is paying attention to possible price fluctuations. Historically, halving events impact prices, with Bitcoin rallies often coinciding with halving events.

The analysis highlighted that, unlike other events, in this upcoming Bitcoin halving there is a new source of demand coming from the traditional institutional sector, driven by the recently introduced spot Bitcoin ETFs. Trading in US ETFs began on April 11, taking sector trading to new heights.

“Unlike previous BTC halvings, this time there is a new source of demand coming from the traditional institutional sector. The newly introduced Bitcoin ETFs drive institutional demand, resulting in ETF portfolios already accumulating 4.27% of the Bitcoin supply!” he wrote.

Unlike past BTC halvings, this time there’s a new source of demand coming from the traditional institutional sector.

The newly introduced Bitcoin ETFs drive institutional demand, leading to ETF wallets already amassing 4.27% of the Bitcoin supply! pic.twitter.com/volLU15Wgd

— IntoTheBlock (@intotheblock) April 13, 2024

At the time of publication, the price of Bitcoin was quoted at US$67,584.46, down 2.5% in the last 24 hours.

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.

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