Bitcoin whales have been increasing their holdings of BTC in the lead-up to the upcoming Bitcoin halving. This surge in demand suggests a positive market sentiment as the halving approaches. Crypto analytic firm CryptoQuant has reported that demand from long-term BTC holders has exceeded the market supply of new Bitcoin for the first time. This indicates that the supply of new Bitcoin being produced through mining is not enough to meet the demand from investors, and this scarcity will only increase after the halving. The growing demand from whales, along with spot Bitcoin inflows, is expected to drive up the price of Bitcoin in the short and long term. The Bitcoin halving is a significant event in the crypto ecosystem, often accompanied by price surges. Historical data shows that bull runs usually begin months before the halving due to anticipation of reduced BTC supply. After the halving, the price of BTC typically rises significantly due to the decrease in supply and the resulting supply-demand imbalance. In addition to affecting supply, halvings also impact miners who verify transactions and add new blocks to the blockchain. Each halving reduces the amount of BTC earned by miners, increasing the cost of mining new BTC. Therefore, BTC prices need to reach a certain level for miners to remain profitable. Currently, the average cost of mining one Bitcoin is around $49,000, which is profitable at the current trading price of $70,000. However, post-halving, BTC prices will need to surpass $80,000 for miners to continue operating at a profit. The accumulation of BTC by whales is seen as a positive indicator for the crypto market, as it suggests that large BTC holders are moving their assets to cold wallets in anticipation of a price increase.
Bitcoin whales entering accumulation phase as BTC halving approaches within a week