**Bitcoin Receives Over $607 Million In Value Everyday, What Happens After Halving?**
The Bitcoin network relies on miners for security and decentralization, making its transactions censorship-resistant and global. Despite concerns about centralization, the wide network of miners plays a crucial role in the platform’s value.
Miners are currently rewarded with 6.25 BTC after every block, which amounts to around $46 million per day. However, this fiat value fluctuates depending on spot rates.
According to on-chain analyst Willy Woo, the expanding demand for Bitcoin is estimated to be around $607 million daily. This calculation takes into account changes in the realized cap, which is a metric that reflects the total amount investors have paid for the circulating BTC based on their purchase price.
Woo notes that the realized cap only captures on-chain transactions, making it a conservative estimate of demand injected into Bitcoin. He believes that this imbalance in supply and demand could drive prices even higher in the near future. Woo expects this trend to accelerate leading up to the next Bitcoin halving scheduled for early April 2024.
Bitcoin halving occurs approximately every four years and reduces the new BTC created per block by 50%. Woo believes that this decrease in supply, combined with the already strong demand, will push prices higher and rapidly increase the realized cap.
**Reddit Plans To Go Public, Buying BTC And ETH**
Woo’s optimism is supported by recent news that Reddit plans to invest some of its excess cash into Bitcoin and Ethereum (ETH). The popular social media platform has filed for an initial public offering (IPO) this week.
This move by Reddit showcases growing institutional adoption of cryptocurrencies and is a positive development for investor confidence. According to Reddit’s IPO prospectus, its revenue expanded by 20% in 2023, and it boasts over 70 million daily active users. It is likely that a significant portion of funds will be allocated to BTC and ETH once Reddit goes public.
**Hot Take: Willy Woo Sounds Bullish Alarm for Bitcoin**
On-chain Bitcoin analyst Willy Woo is sounding the bullish alarm, citing strong demand and dwindling supply as reasons for optimism. He highlights the expanding demand for Bitcoin, estimated at $607 million daily, compared to the $46 million of new supply created through mining.
Woo believes that this increasing demand, combined with the upcoming Bitcoin halving in April 2024, will drive prices higher. The decrease in supply and the already strong demand will contribute to a rapid increase in the realized cap.
Additionally, the news of Reddit planning to go public and invest in Bitcoin and Ethereum further supports the growing institutional adoption of cryptocurrencies. This move by a major technology company is a positive development for investor confidence.
Overall, the combination of increasing demand, decreasing supply, and institutional adoption sets a bullish tone for Bitcoin’s future. As an investor or crypto enthusiast, it is important to keep an eye on these factors and stay informed about market trends.
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