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Bitcoin price has anchored above $69,000 and is finding buyers at $69,840 as of the time this article was prepared. The rally in altcoins has weakened due to the loss of the $70,000 level. However, with less than a month to the halving, important signals for performance are emerging. This data could increase investors’ appetite for risk.
Bitcoin (BTC) Whales
BTC is approaching its block reward halving, and the Bitcoin price has reached an all-time high before the halving. The increased risk appetite among investors is supported by demand exceeding $11 billion through the spot Bitcoin ETF channel. Moreover, BTC whales seem convinced of further increases.
According to data provided by Santiment, the proportion of Bitcoin whales (wallets holding between 1,000 and 10,000 BTC) increased from 23% on January 1 to 25.17% today. The percentage of those holding between 10,000 and 100,000 BTC rose very quickly from 11.68% on March 2 to 12.42% on March 21.
Will Cryptocurrencies Rise?
The data supporting the BTC price increase is also a strong signal for the expected recovery in cryptocurrencies. Moreover, BTC inflows to exchanges seem to be decreasing according to a Glassnode report. BTC deposits to exchanges dropped to 55,505 on March 25. On March 5, there were around 109,000 deposit transactions to exchanges.
A decrease in BTC sent to exchanges is a positive signal for the price and, combined with whale activity, suggests that new highs could be reached by the halving period. Glassnode analyst Marcin Miłosierny wrote;
“The strong buying demand through the ETF channel promises something bigger than the supply shortage we will see with the halving. We see that Bitcoin’s supply dynamics are increasingly affected by the actions of long-term investors (LTHs).”
Rekt Capital shared a chart about the halving, indicating that we are still in an accumulation range. Accordingly, as the halving date approaches, it seems likely that the price will consolidate at higher levels.
According to Daan Crypto Trades, if Bitcoin price can hold above $70,000, we may indeed see the once utopian six-figure prices. This supports optimism for a new all-time high expected by the end of 2024.
