The Influence of Bitcoin Halving on Price Less Strong: Study Shows Demand Driving Up Value

With the approaching Bitcoin (BTC) halving everyone in crypto land is currently waiting for a major upward trend. When you look at past data, it appears that the price of bitcoin rises sharply after a halving. But if one compares the current data with that of the past, the current situation seems different from that in the past prior to a halving event.

Influence of Bitcoin halving less strong

From a recent study by CryptoQuant turns out that the influence of a Bitcoin halving will have a less strong effect this time. According to them, this has everything to do with the big difference in supply and demand on the current market.

After the upcoming Bitcoin halving, the reward for Bitcoin miners will halve from 6.25 BTC to 3.125 BTC. This halving also means that less bitcoin will be available on the market. The resulting scarcity drives the market price up. In previous cycles, this reduced supply was a bigger driver of the big price increases. But now that demand is already so high, the influence of the Bitcoin halving seems to be less strong.

Demand for bitcoin drives the price up

The research data shows that demand from whales, with at least 1,000 to 10,000 BTC in their possession, has even risen to a record high. In the past month, demand for bitcoin increased by as much as 11%.

CryptoQuant states in their research that the demand for Bitcoin is currently already 30 times higher than the demand prior to the Bitcoin halving in 2020.

“Long-term holders currently buy 200,000 bitcoins per month. This is much more than the 28,000 bitcoins that come onto the market every month. At the same time, the new supply will further decrease to approximately 14,000 Bitcoin per month,” CryptoQuant said.

This large difference in supply and demand can in itself have a major impact on the market price of bitcoin. According to CryptoQuant, the influence of the upcoming Bitcoin halving will therefore be less significant than expected.

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