Bitcoin still stands out as the undisputed king. At the dawn of a crucial event – the Halving – the crypto community is witnessing a significant drop in the active supply of BTC, raising questions and hopes. Is this the prelude to a meteoric rise?
Bitcoin supply, a barometer of market activity
Active supply of Bitcoin and Ethereum are hitting historic lows, according to recent data. The reduction in the circulating supply of Bitcoin to just 30% and Ether to 39% highlights a trend toward hodling, or long-term holding.
This supply inertia can be interpreted as a sign of holders’ confidence in the long-term value of these assets. Historically, such low levels of activity have often preceded periods of significant increases.
It is fascinating to note that at its peak, over 59% of Bitcoin’s supply was active, in stark contrast to the current situation. This change indicates an evolution in the perception and use of Bitcoinmoving from a highly speculative asset to a long-term investment.
Anticipation is building around the Bitcoin Halving. Historically, these pivotal moments have consistently resulted in remarkable price increases, marking turning points in crypto history.
The fact that only 58.58% of Bitcoin’s supply has changed hands over the past three years, compared to over 73% at the end of 2019, reveals continued accumulation.
Although inactive supply reaches record highstransaction volume remains high, suggesting growing interest and increased adoption of Bitcoin, despite, or perhaps because of, its increasing scarcity.
Bold predictions and market reality
The prediction of Bitcoin’s value at $732,000 after the Halving of 2024, according to the model of Greg Cipolaro, challenges and fascinates. This would represent a astronomical 1,800% increase from current levels.
Of note, past predictions from Cipolaro’s model have shown notable accuracy. This adds credibility to his latest bold prediction.
However, the crypto world is notoriously unpredictable. Bitcoin’s past performance, notably the increase of more than 2,000% in 2017, suggests the possibility of such scenarios, while highlighting the intrinsic volatility of this asset.
In conclusion, current data around Bitcoin’s supply and bold predictions for its post-Halving future suggest a changing landscape for the world’s leading crypto.
As we head towards this pivotal moment, the crypto community is kept on edge, wondering if we are on the cusp of a new era of prosperity for Bitcoin or if we are sailing into more uncertain waters. One thing is certain: Bitcoin continues to captivate the imagination and stimulate debate, confirming its status as a beacon in the crypto universe. Meanwhile, Vitalik reveals Plasma.
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