With the recent Bitcoin halving event causing significant changes in the cryptocurrency space, Bitfinex’s analysis provides reassurance to investors regarding the market dynamics of BTC post-halving. According to Bitfinex’s Alpha report released on April 22, the on-chain data indicates positive developments for Bitcoin despite the current uncertainty in the United States economy. The report highlights that the exchange withdrawals of Bitcoin are at levels not seen since January 2023, suggesting that many investors are moving their assets into cold storage in anticipation of price increases.
Bitfinex also notes that despite long-term investors’ aggressive selling, the typical pre-halving price decline has not occurred. This indicates that new market participants are effectively absorbing the selling pressure, showcasing the resilience of Bitcoin’s current market structure. The report further reveals that the average daily net inflow from spot Bitcoin Exchange-Traded Funds (ETFs) is $150 million, surpassing the daily issuance rate of BTC post-halving. This significant supply and demand imbalance could potentially drive further price appreciation for Bitcoin.
Miners’ Reward Adjustment
Following the halving, where miners’ rewards were reduced from 6.25 BTC to 3.125 BTC, miners have been adjusting their strategies to maintain profitability. The decrease in Bitcoin sent to exchanges by miners suggests that they may be selling in advance or using their holdings as collateral to upgrade infrastructure. This gradual decrease in selling pressure could prevent a sudden drop in Bitcoin’s value post-halving.
Post-halving, there has been a notable increase in new Bitcoin whales, as reported by CryptoQuant’s CEO Ki Young Ju. These new whales, who are short-term holders, have made initial investments nearly double the combined investments of old whales, who are long-term holders. The total holdings of these new whales amount to $110.6 billion, while old whales hold $67 billion worth of BTC. This shift in whale demographics could potentially impact the future trajectory of Bitcoin and the overall cryptocurrency landscape.
Bitfinex’s analysis provides valuable insights into the post-halving dynamics of the Bitcoin market. Despite the challenges brought about by the halving event, the data indicates positive signs for Bitcoin’s market structure and price outlook. Investors are advised to conduct their own research before making any investment decisions in the volatile cryptocurrency market.