The latest event that has seen its halving is now underway. Bitcoin The crypto market received a boost from this positive message. This big decline in supply is historically linked to significant price increases, giving investors hope.
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Halfing the production rate of Bitcoins has actually reduced the number of Bitcoins that are being added to the market. With the sudden fall in Bitcoins, and with an increase of interest from both institutions, and a wider usage, Bitcoins are likely to rise.
Investors are closely observing this dynamic and anticipate a trend similar in the future. Previous halvings often followed significant price increases.
Bitcoin: A new investor attitude
This clear decline in new Bitcoin exchange deposit addresses is a sign of a trend on the Bitcoin market. The data from the popular analysis tool CryptoQuant This shows there are 25,000 Bitcoins, not 70,000. The decline in sales pressure indicates a shift in investor behaviour towards holding Bitcoin rather than trading it.
Investors unwilling to sell #Bitcoin
“A decreased willingness to sell assets could lead to a reduction in the supply of Bitcoin on the market, which, with steady or increasing demand, may cause price increases.” β By @AxelAdlerJr
Posting Full Articleπhttps://t.co/HdipPeIh6h pic.twitter.com/jhNDHiSKst
β CryptoQuant.com (@cryptoquant_com) July 23, 2024
AxelAdlerJr of CryptoQuant believes that this decrease in sales pressure is a sign that investors are now more inclined to hold their Bitcoins rather than trade them.
A mature market will exhibit such behavior. Investors trade less as they gain confidence in Bitcoin’s value over the long term. Spending in a stable manner could make the market more stable and less volatile. This shows that Bitcoin has become a valuable asset, rather than just an investment.
Institutional confidence and market psychology
Everything has changed as more investors pour money into Bitcoin. Institutional investors and big businesses provide market security and legitimacy, which may influence the way individuals approach investing. Smaller investors may be inspired by the long-term perspective of big players.
The behavioral economists can greatly enhance this dynamic. Individual investor sentiment may change if additional institutional investors enter the market. The positive feedback that can be generated by this phenomenon is an increase in confidence which leads to more investments.
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A decline in the number of deposit addresses is an important statistic illustrating this change. This suggests that investors, anticipating higher future prices and less willing to sell Bitcoin, are less likely to do so. This line of reasoning is supported by the fact that both individual and institutional investors are increasing demand and decreasing supply.
Chart from TradingView, image from Pixabay
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Source: www.newsbtc.com