Whales have been amassing substantial amounts of Bitcoin (BTC) in the lead-up to the upcoming halving event. With just a week remaining until the fourth Bitcoin halving, which will see the block reward reduced to 3.125 BTC, the increased demand from whales suggests a bullish market sentiment.
Crypto analytic firm CryptoQuant has shared data showing that the demand from Bitcoin whales has reached unprecedented levels. The demand from “permanent holders” has surpassed the market supply of new Bitcoin for the first time. This indicates that the amount of new Bitcoin being produced through mining is insufficient to meet the demand of cryptocurrency investors, and this scarcity will only intensify after the halving event.
The growing demand from BTC whales, coupled with the influx of spot Bitcoin, will exert upward pressure on the price of the leading cryptocurrency. In the medium and long term, this trend could potentially drive the value of Bitcoin even higher.
The Bitcoin halving is a significant event in the crypto ecosystem and is often accompanied by euphoric price action. Historically, each bull run has begun months ahead of the halving in anticipation of the reduced supply of BTC. Following the halving, the price of BTC typically experiences a substantial increase due to the diminished supply and the resulting supply-demand imbalance.
In addition to its direct impact on supply, BTC halvings also affect the miners responsible for verifying transactions and adding new blocks to the blockchain. Each halving cuts the amount of BTC earned by miners in half, thus increasing the cost of mining new BTC. As a result, BTC prices need to reach a certain level for miners to continue operating profitably.
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, after the halving, BTC prices must surpass $80,000 for miners to remain profitable.
The accumulation of whales is a positive sign for the crypto market, indicating that major BTC holders are moving their assets to cold wallets in anticipation of a price surge.