Bitcoin Bulls Charge Ahead of Halving, Hit 20-Month High
In A Nutshell
On March 24, a notable surge in Bitcoin (BTC) accumulation was observed, marking one of the largest single-day increases in recent history. Wallets holding between 10 and 10,000 BTC added approximately 51,959 BTC to their holdings, bringing the total supply controlled by this group to a 20-month high of 13.19 million. This event comes as anticipation builds for the upcoming Bitcoin halving, an event that historically has a significant impact on Bitcoin’s market dynamics by reducing the block reward and thus the new supply of BTC.
Pre-Halving Market Dynamics
Analysis from the on-chain analytics firm Santiment highlights the scale of this accumulation, which accounted for nearly 0.263% of Bitcoin’s total circulating supply on just that day. The increasing holdings of these so-called “whales” and “sharks” have pushed their share of the total BTC supply to 67%, the highest since July 2023. This behavior suggests a bullish sentiment among large-scale investors as the next halving event approaches, with expectations of a supply squeeze that could propel BTC’s price upwards.
Decrease in Stablecoin Holdings Among Whales
Intriguingly, alongside this accumulation, there has been a notable decrease in stablecoin holdings among these large BTC holders. Specifically, those with between 100,000 and 10 million units of USDT and USDC have reduced their holdings to levels not seen since early 2023. This shift indicates that future buying activity may rely less on stablecoins, suggesting a strategic move by investors to position themselves ahead of anticipated market movements.
Next Milestone: $72,800?
As Bitcoin trades just above $71,000, technical analysts, including Ali Martinez, predict potential short-term price targets. Martinez suggests that if BTC maintains support at $70,400, it could soon reach as high as $71,800, with a longer-term target of $72,880 once it emerges from its corrective phase. These predictions underscore the market’s optimism and the weight of technical resistance levels in shaping Bitcoin’s price trajectory.
Our Take
The recent significant accumulation of Bitcoin by large holders and the reduction in stablecoin reserves among the same group signal a strong confidence in the near to medium-term prospects of BTC, especially in the context of the upcoming halving event. While technical analysis provides potential price targets, the underlying fundamentals, including reduced supply post-halving and increasing institutional interest, present a compelling case for Bitcoin’s continued ascendancy in the cryptocurrency market. As always, investors should conduct their research and consider the broader market dynamics when making investment decisions.
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Sources: Santiment, CoinMarketCap
