Bitcoin Halving

Bitfinex Predicts Bitcoin’s Post-Halving Demand Will Rise 5 Times

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, marking the finalization of its fourth halving. New Bitcoin supply to the market might fall to $30 million daily, according to the most recent estimations from Bitfinex Predicts Bitcoin. The average daily inflows into Bitcoin ETFs would be less than five times this.

Bitcoin’s demand could grow five times higher than the supply.

The recent halving of Bitcoin’s mining rewards has changed the market so that New Bitcoin supply to the market might fall to $30 million daily, according to the most recent estimations from Bitfinex Predicts Bitcoin, Which could cause demand for BTC to increase fivefold above supply. There was a 50% reduction in the miner incentive over the weekend, from 6.25 BTC to 3.125 BTC. The total amount of daily coins issued to the supply could fall below $30 million in notional value due to the halving of awards. An enormous drop, perhaps five times lower than the typical daily demand for Bitcoin ETFs, might occur if this trend continues.

Bitfinex’s Analysis

Bitfinex said the daily issuance rate has fallen since the last halving. Thus, in USD-notional terms, the new quantity of Bitcoin mined would be $40–50 million. Researchers believe this might drop to $30 million per day when smaller mining operations close, considering active and dormant supply and miner sales. According to the same sources, Bitcoin ETF flows have slowed or gone negative in recent weeks, but the average daily net inflows are still over $150 million.

Glassnodes reports that daily Bitcoin supply additions have dropped to 450 BTC from 900 BTC before the halving event, indicating a supply squeeze. In early 2024, the SEC approved spot Bitcoin ETFs for US speculators to gain exposure to Bitcoin without owning it. New Bitcoin supply may fall to $30 million daily, according to Bitfinex Predicts. Bitcoin forecasts the same average daily ETF inflows as in recent months.

Like the 2004 launch of gold ETFs, the analysts said that approving BTC ETFs would pave the way for new demand. Investors might have exposure to gold through these without actually having to store any physical bullion. Investors are taking physical possession of their coins, which the exchange said is reducing supply on the market. The latest predictions from Bitfinex Predicts indicate that the daily supply of new Bitcoins could drop to $30 million. The latest on-chain statistics show that Bitcoin exchange outflows have hit levels not seen since January 2023, according to Bitcoin.

This means many investors put their assets in cold storage to prepare for future price increases. When writing, Bitcoin traded above $66k on CoinMarketCap, a 0.33% increase from the previous 24 hours. Even after the halving, Bitcoin miners are still optimistic, focusing on reducing costs, improving equipment, and meeting the increasing demand for Bitcoin.

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