As Bitcoin halving approaches, it seems like demand has surpassed issuance.
CryptoQuant analysts have discovered that the demand for Bitcoin from long-term holders has surpassed the issuance of BTC for the first time ever. This finding has provided additional support for a potential price rally. According to the research report from CryptoQuant, long-term holders are now acquiring approximately 200,000 BTC per month, significantly exceeding the monthly issuance of around 28,000 BTC. This significant increase in demand comes ahead of the upcoming halving event, which is expected to reduce the monthly issuance to about 14,000 BTC. Tezos co-founder, Arthur Breitman, described the halving as a “reduction in security budget” and emphasized the need for future adjustments to emission policies to maintain security. While some crypto executives, like Arthur Hayes, anticipate price declines before and after the halving, others, like Marathon CEO Fred Thiel, believe that the halving’s impact may already be priced in. The halving, set to occur in mid-April, will reduce mining rewards from 6.25 to 3.125 BTC per block and will continue until all 21 million BTC have been mined, after which miners will rely solely on transaction fees for rewards.
