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@ croxroadnews
2025-01-06 01:15:32Table Of Content
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The Anticipation of Bitcoin Halving
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Progress Status: 85% Complete
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Long-Term Holders and Their Influence
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Analyzing the Supply Trends
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What History Tells Us
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Conclusion
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FAQ
In the dynamic world of cryptocurrency, certain events stand out as pivotal moments that can shape the trajectory of the market. One such event is the Bitcoin halving, a process that reduces the rewards for mining Bitcoin by half, effectively slowing down the rate at which new Bitcoins are created. As we approach the next halving, scheduled for mid-2024, there's a palpable sense of anticipation among investors and market watchers. This article delves into the current status of the halving process and examines the role of long-term holders in influencing market trends.
The Anticipation of Bitcoin Halving
The cryptocurrency market is on the brink of a significant phase. With the next Bitcoin halving anticipated in mid-2024, the event is garnering immense attention from investors. Historical patterns suggest that a full-fledged bull market might not commence until the following year.
Progress Status: 85% Complete
Recent data reveals that the Bitcoin halving process is 85% complete. Concurrently, the supply of Bitcoin held by long-term holders (LTHs) is nearing its all-time high (ATH). In past cycles, such a scenario indicated the proximity of a macro bottom, which was then succeeded by the onset of a new cycle.
Long-Term Holders and Their Influence
The amount of Bitcoin supply in the possession of long-term holders has traditionally served as a reliable gauge for the cryptocurrency market's health. This metric has shown an inverse correlation with Bitcoin's long-term price trajectory.
During market lows, long-term hodlers tend to keep their assets stationary. The most significant surge in LTH possession typically transpires during intense bear markets. This is when steadfast investors, despite witnessing Bitcoin's price plummet, choose not to sell. Their conviction lies in the belief that the market will eventually recover, making their investments profitable.
Conversely, during a bull market's unraveling, the spike in Bitcoin's price prompts LTHs to become increasingly inclined to sell their assets for profit. Historically, every major bull market has seen a sharp decline in the supply held by LTHs. This leads to the coins transitioning to short-term holders (STHs), who are motivated by quick profit prospects.
Analyzing the Supply Trends
A cryptocurrency analyst showcased a chart depicting the Bitcoin supply in the hands of long-term holders. The chart reveals that the current BTC supply ratio held by LTHs is nearing its ATH of 76%, a benchmark set in late 2015 before the second halving.
Historically, this indicator peaked several months before each Bitcoin halving. Following this peak, the supply held by LTHs would typically plateau until several months post the subsequent halving. A significant drop in this metric was observed roughly six months after the event, marking the advent of a mature bull market.
What History Tells Us
If past patterns hold true, the cryptocurrency market might experience a sideways trend for approximately a year. The upcoming Bitcoin halving in mid-April 2024 might not have an immediate influence on Bitcoin's price. Its repercussions might only manifest in the last quarter of 2024 and continue into 2025.
This forecast aligns with the trends observed in the supply chart of long-term holders. The indicator is on the verge of reaching its ATH and might require around 12 months to reverse its trajectory, transitioning into a distribution phase. The commencement of LTHs selling post the Bitcoin halving could be one of the early indicators of a budding cryptocurrency bull run.
Conclusion
The Bitcoin halving is more than just a technical event; it's a significant milestone that has historically influenced market dynamics and investor behavior. As we inch closer to the next halving, the role of long-term holders becomes increasingly crucial. Their actions, whether holding steadfastly or choosing to sell, can set the tone for the market's direction in the subsequent months. While history offers insights, the ever-evolving nature of the cryptocurrency landscape means that nothing is set in stone. Investors and enthusiasts alike should remain vigilant, informed, and prepared for the myriad possibilities the future holds.
FAQ
When is the next Bitcoin halving expected? The next Bitcoin halving is anticipated to occur in mid-2024.
How does the halving impact long-term holders? Historically, as the halving approaches, the supply of Bitcoin held by long-term holders (LTHs) nears its all-time high, influencing market trends and price trajectories.
What does the current data suggest about the halving process? Current data indicates that the Bitcoin halving process is 85% complete, with the supply held by LTHs nearing its all-time high.
How has Bitcoin halving influenced market dynamics in the past? In previous cycles, the approach of a halving event signaled the proximity of a macro bottom, followed by the early phase of a new market cycle.
That's all for today
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