TL;DR
- On-chain data shows that demand for Bitcoin from HODLers is currently outpacing miner issuance for the first time.
- The increase in demand could drive a bullish trend in BTC price by reducing the available supply in the market.
- The upcoming Halving, scheduled in approximately ten days, could further intensify this bullish trend if demand continues to outpace issuance.
On-chain data reveals an unprecedented phenomenon in the Bitcoin market: demand from HODLers is surpassing miner issuance for the first time in history, and by a significant margin. This unusual situation has caught the attention of the community, and investors are closely monitoring the situation.
According to Julio Moreno, head of research at CryptoQuant, demand for Bitcoin has experienced unprecedented growth in recent weeks. In particular, there has been an increase in demand from so-called “permanent HODLers,” who are investors that hold their BTC long-term and have no history of selling. These investors, also known as accumulation address holders, are contributing significantly to the total demand for Bitcoin in the market.
$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
This phenomenon could have a strong implication for a bullish trend in the price of BTC. Since HODLers are not selling their bitcoins, the available supply in the market is gradually decreasing, which could lead to a price increase. Furthermore, it reflects strong investor confidence in the long-term potential of Bitcoin.
Divergent Views on Bitcoin’s Halving
On the other hand, the issuance of new BTC follows a pattern related to the upcoming Halving. This event occurs approximately every four years and halves the rewards that miners receive for solving blocks on the Bitcoin blockchain.
Scheduled to occur in approximately ten days, this event could have an additional effect on the supply of BTC and, therefore, its price. If demand from HODLers continues to outpace miner issuance, we could see a sustained increase in the price of BTC in the coming weeks.
The growing demand suggests a bullish outlook for the industry-leading cryptocurrency. However, market experts have expressed ambiguous opinions about the possible outcomes that could unfold after the Halving. As the days pass, we will remain vigilant of the evolution in BTC price and demand.
