Bitcoin Supply Drop Signals Upbeat Price Movement, Analyst Says
July 26 2024 - 10:30AM
NEWSBTC
After its latest halving event, Bitcoin sent a positive signal
throughout the crypto market. Historically, this big drop in supply
has been connected to notable price gains, which has inspired
investor hope. Related Reading: Debunking Doubts: How XRP Could
Achieve A 3-Digit Surge — Analyst The halving, which cut the rate
at which new Bitcoins were made, has actually slowed the flow of
new Bitcoins into the market. This sudden drop in supply, along
with growing interest from institutions and wider use, is likely to
push Bitcoin prices up. Many investors are attentively observing
these dynamics and expect a similar trend in the near future;
previous halvings have sometimes followed significant price
rebounds. Bitcoin: Changing Investor Attitudes The substantial
decline in the number of new deposit addresses on cryptocurrency
exchanges marks a clear trend in the Bitcoin market. Data from the
well-known analysis tool CryptoQuant shows that just 25,000 rather
than 70,000 freshly registered Bitcoin deposits exist. This decline
in selling pressure denotes a change in investor behavior towards
holding rather than trading their Bitcoin. Investors are unwilling
to sell #Bitcoin “A decreased willingness to sell assets could lead
to a reduction in the supply of Bitcoin on the market, which, with
steady or increasing demand, may cause price increases.” – By
@AxelAdlerJr Full post 👇https://t.co/HdipPeIh6h
pic.twitter.com/jhNDHiSKst — CryptoQuant.com (@cryptoquant_com)
July 23, 2024 According to CryptoQuant analyst AxelAdlerJr, this
decline in selling pressure denotes a change in investor behavior
towards holding rather than trading their Bitcoin. Such behavior
shows that the market is mature. As investors gain more faith in
Bitcoin’s long-term value, they trade less. They spend in a more
stable way, which might make the market less volatile and more
stable. This trend shows that buyers are beginning to see Bitcoin
as an asset with value, not just a way to speculate, which is good
news for the cryptocurrency. Institutional Confidence And Market
Psychology As more and more investment firms are pouring money into
Bitcoin, everything has changed. Big investment businesses and
institutional investors provide the market legitimacy and security,
which can affect how regular individuals think about investing. Big
players may inspire trust and long-term thinking among smaller
investors. This dynamic is much enhanced by behavioral economics.
The activities and confidence levels of additional institutional
investors entering the market might affect the sentiment of
individual investors. This phenomena can result in a positive
feedback whereby rising confidence stimulates more investment.
Related Reading: Solana Set For 900% Rally With Breakout From This
Pattern — Analyst One important statistic emphasizing this change
in investor attitude is the declining deposit addresses. It implies
that anticipating better future prices, investors are less ready to
sell their Bitcoin. Supported by both lower supply and higher
demand from both institutional and individual investors, this line
of thinking fits the growing conviction that the price of Bitcoin
will keep rising. Featured image from Pixabay, chart from
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