Summary
TLDR: The upcoming Bitcoin halving will reduce new issuance and selling pressure from miners, but the impact on prices is diminishing. Demand growth from large holders and permanent holders is now the main driver for price rallies post-halving. Permanent holders are adding more BTC monthly than the issuance, leading to potential price increases. Analysts suggest that demand growth will be the key factor for higher Bitcoin prices after the halving.
Key Points
1. The upcoming Bitcoin halving is expected to reduce new issuance by 14,000 BTC per month, decreasing sell pressure from miners. However, the impact of halvings on Bitcoin prices is diminishing as the issuance becomes smaller compared to the total supply available for sale.
2. Demand growth from large holders and whales is emerging as the primary driver for higher prices post-halving. Long-term holders have been selling an average of 417,000 BTC per month, overshadowing the monthly issuance of 28,000 BTC.
3. Permanent holders are now adding around 200,000 BTC monthly to their balances, surpassing the monthly issuance amount. The dwindling monthly issuance of Bitcoin represents just 4% of the total available supply, contrasting with previous halvings where issuance represented a larger percentage of the total supply.