Key Points
- Bitcoin’s post-halving demand could surge five times, Bitfinex Predicts Bitcoin’s estimates.
- It could set the stage for new Bitcoin price rallies if this happens.
On April 20, Bitcoin’s miner payouts were reduced from 6.25 BTC to 3.125 BTC, the finalization of its fourth halving. The fresh Bitcoin supply to the market may sink to $30 million daily, as stated by Bitfinex, which predicts Bitcoin according to the latest calculations. The giro of Bitcoin ETFs, on average, will be less than five times this amount.
Bitcoin’s demand could grow five times higher than the supply.
The recent halving supply of Bitcoin has caused the market to become a new Bitcoin that brings around $30 million every day, according to the latest data from Bitfinex. Besides, it can lead to BTC being demanded five times more than the supply. During the weekend, the miners reduced the compensation by 50% from 6.25 BTC to 3.125 BTC. The aggregate of new cryptocurrencies released daily to the market, valued at a nominal $30 million, could shrink because of the halving of rewards. A sharp drop, maybe five times less than the average daily demand of Bitcoin ETFs, could be the situation if this trend continues.
Bitfinex’s Analysis
Bitfinex said miners made $40 to $50 million worth of Bitcoin daily, but this could drop to $30 million as smaller miners quit. ETF flows cooled but were still over $150 million a day. Bitcoin’s new supply fell to 450 BTC daily after the halving event, causing a supply issue. In 2024, the SEC allowed regular investors to buy Bitcoin ETF shares without owning the actual coins. Bitfinex Predicts Bitcoin’s daily supply might fall to $30 million with the same ETF inflows as before.
Gold ETFs paved the way for new Bitcoin demand, allowing investors to buy gold without dealing with physical gold. Investors moved their coins into cold storage, so there were fewer coins available. According to the latest figures on-chain, Bitfinex predicts daily supply could fall to just $30 million as outflows from exchanges reach levels not seen since early 2023. Many people hold funds in cold wallets awaiting price growth. Bitcoin surged beyond $66k, a 0.33% rise today. Miners focus on cutting costs and improving gear to meet demand despite halving.
FAQs
What does Bitfinex predict about Bitcoin's demand following the halving?
Bitfinex forecasts that Bitcoin's demand could surge five times higher than the reduced supply due to the halving, potentially driving up prices.
How have Bitcoin ETF flows affected the market?
Bitcoin ETF flows remain strong, over $150 million daily, but the reduction in new supply from mining could create a significant supply shortage, further boosting demand.
What role do Bitcoin ETFs play in driving demand for Bitcoin?
Bitcoin ETFs, similar to gold ETFs, enable investors to gain exposure to Bitcoin without directly owning it, increasing demand while reducing the availability of coins on exchanges.
What are Bitcoin miners doing to adapt to the halving event?
Bitcoin miners are focusing on cutting costs and upgrading equipment to maintain profitability despite the 50% reduction in rewards following the halving.
