After the Bitcoin halving, the market demand is 5 times the supply! Bitfinex: Miner selling slows, BTC outflows continue

This site (120BTc.coM): Bitcoin halving completed the fourth halving on the morning of last Saturday (20). The block reward of the Bitcoin network officially increased from 6.25 to 6.25 pieces. BTC has been halved to 3.125 BTC, and the market is focusing on whether the reduction in block rewards will further push up the price of Bitcoin. Bitcoin demand is five times supply The value could drop to $30 million (including active addresses, supply of dormant addresses, and miner sales), equivalent to only one-fifth of the average daily demand for the U.S. Bitcoin Spot ETF.

The analysts added that although the net inflow of funds into the Bitcoin spot ETF has slowed down in recent weeks, and even occasionally experienced net outflows, its average daily net inflow still exceeds US$150 million. Far exceeding the $30 million in new daily supply.

Direct custody by investors and selling by miners weaken the market supply

In addition, Bitfinex analysts also said that current on-chain data shows that the exchange’s Bitcoin outflow has reached the highest level since 2023 level, indicating that many investors predict that Bitcoin will continue to rise in the future and will move their Bitcoin holdings to cold storage devices.

On the other hand, miners’ selling is also likely to slow down, as miners or organizations responsible for mining Bitcoin sell off most of their inventory in the months leading up to the halving, bringing the number of BTC held by miners to as low as A new low since the beginning of 2021. According to data, the number of Bitcoins held by miner-related wallets fell by more than 18,000 in the six months before the halving.

The number of BTC held by miners hit a new low since the beginning of 2021

In summary, investors withdraw Bitcoin from the exchange to their own wallets , coupled with miners selling most of their inventories before the Bitcoin halving, the two actions will jointly reduce the supply of Bitcoin on the market, which is good news for price increases.

Bitfinex attached an analysis chart to illustrate that after the previous halving, the price of BTC rose sharply. For example:

After the 2020 halving, the price of Bitcoin continued to rise. It has risen nearly seven times in the next year

• The previous halvings in 2016 and 2012 also led to significant price increases

• Recently A halving occurs after a year of price increases that saw Bitcoin peak at $73,666

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