Bitfinex Report: Analyzing Post-Halving Bitcoin Market Dynamics
Following the recent Bitcoin halving event, Bitfinex conducted an in-depth analysis of the cryptocurrency market dynamics to provide reassurance to investors amidst the current uncertainty in the United States economy. The latest Alpha report from Bitfinex, released on April 22, delves into on-chain data to highlight positive signs for Bitcoin post-halving.
Increased Withdrawals Indicate Bullish Market Sentiment
Bitfinex observed that exchange withdrawals of Bitcoin have surged to levels not seen since January 2023. This uptick suggests that a significant number of investors are moving their assets into cold storage in anticipation of potential price increases in the future.
- Long-term investors’ selling pressure has not triggered the usual pre-halving price decline.
- New market participants are absorbing the selling pressure effectively, indicating a strong market structure for Bitcoin.
Net Inflows from Spot Bitcoin ETFs Signal Positive Market Outlook
The Bitfinex Alpha report unveiled that the average daily net inflow from spot Bitcoin Exchange-Traded Funds (ETFs) is currently $150 million. This influx far exceeds the daily issuance rate of BTC post-halving, hinting at a potential supply-demand imbalance that could drive further price appreciation.
- Massive spot Bitcoin ETF purchases, dominating the market narrative, may decrease in the future.
- Recent ETF outflows suggest that demand is starting to stabilize, supporting a more balanced market outlook.
Miners Adjust Operations Post-Halving
Following the recent halving event, miners’ rewards were reduced from 6.25 BTC to 3.125 BTC. Consequently, miners are adapting their operational strategies to cope with the reward reduction and sustain their activities post-halving.
- Decreased Bitcoin transfers from miners to exchanges indicate a potential adjustment in selling practices.
- Miners may be either selling in advance or leveraging their holdings to upgrade infrastructure, leading to gradual selling pressure rather than abrupt price drops.
Rise of New Bitcoin Whales
Post-halving data reveals a notable increase in new Bitcoin whales, as reported by CryptoQuant CEO Ki Young Ju. These new whales have made substantial initial investments in Bitcoin, surpassing the combined investment of old whales.
- New short-term whale holders hold around $110.6 billion in BTC.
- Old long-term whale holders have approximately $67 billion worth of Bitcoin.
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