Analyst Says Bitcoin Halving Influence Is No Longer Driving Price, Here’s What Is

Analysts from CryptoQuant have revealed that the influence of the 2024 Bitcoin halving on the price of BTC has notably diminished. According to the crypto analytics firm, the highly anticipated halving event is no longer the key driver for a bullish momentum in BTC. 

CryptoQuant wrote in a recent research report that the upcoming Bitcoin halving event scheduled this April may not deliver the desired price shock expected by most crypto analysts and investors in the space. 

According to the analytics firm, the influence of the Bitcoin halving event has been dwindling over time, with the price of the cryptocurrency and a potential bullish rally being driven by a new change in market dynamics.

Notably, CryptoQuant disclosed that the demand from long-term and large-scale investors, whales, has become one of the primary factors pushing the price of BTC upward. The Head of Research at CryptoQuant, Julio Monero disclosed on Tuesday, April 9, that the demand for Bitcoin from permanent holders has recently outpaced issuance for the first time in history. 

In its report, CryptoQuant also highlighted an 11% month-on-month increase in large-scale Bitcoin investors holding between 1,000 to 10,000 BTC, reaching unprecedented levels. This elevated demand is in sharp contrast with BTC’s supply dynamics and is poised to increase further after the halving event concludes. 

Currently, long-term Bitcoin holders are accumulating more tokens than the new investors entering the market. CryptoQuant revealed that permanent holders have also been adding as much as 200,000 BTC to their portfolio every month while long-term holders are amassing seven times more BTC per month. 

“We argue that the effect of the halving has been diminishing, as the new issuance of Bitcoin gets smaller relative to the amount of Bitcoin selling from long-term holders,” the analytics firm wrote. 

Despite CryptoQuant’s report on Bitcoin’s supply and demand dynamics, numerous analysts still expect a significant uptick in Bitcoin’s price following the halving event. Analysts like Joe Consorti have predicted BTC’s price to rise to $100,000 following the Bitcoin halving. Additionally, he has expressed optimism about a potential bullish rally for the cryptocurrency during this period.

Moreover, due to historical trends revealing a correlation between the Bitcoin halving event and a price surge for the cryptocurrency, various crypto investors have predicted a similar bullish outlook for the cryptocurrency this year. 

Recently, open interest in Bitcoin surged to new all-time highs above $18 billion. This increase suggests that traders and investors are still bullish on Bitcoin’s future value, seeing any price dips as buying opportunities before a potential rally.