Whales have been acquiring substantial amounts of Bitcoin (BTC) in the past week as the fourth Bitcoin halving approaches. This surge in demand from whales is a strong indication of bullish market sentiment. Crypto analytic firm CryptoQuant has revealed that demand from “permanent holders” has surpassed the market supply of new Bitcoin for the first time. This suggests that the quantity of newly mined Bitcoin is insufficient to meet the demand of cryptocurrency investors, and this scarcity is expected to increase even further after the halving event. The increasing demand from BTC whales, coupled with spot Bitcoin inflows, is expected to drive up the price of the top cryptocurrency. In the long run, this trend may contribute to pushing the value of Bitcoin higher. The Bitcoin halving is a significant event for the crypto ecosystem and is typically accompanied by euphoric price movements. Historically, bull runs have started months before the halving, as anticipation of reduced BTC supply builds up. Following the halving, the price of BTC tends to increase significantly due to the decreased supply and the resulting supply-demand imbalance. In addition to its impact on supply, BTC halvings also affect miners, who are responsible for verifying transactions and adding new blocks to the blockchain. Each halving cuts the amount of BTC miners earn in half, thereby increasing the cost of mining new BTC. As a result, BTC prices must rise to a certain level in order 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 approximately $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 sign for the crypto market, indicating that large BTC holders are transferring their holdings to cold wallets in anticipation of a price surge.
Bitcoin whales entering accumulation phase as BTC halving looms only a week ahead