HomeNewsBitcoin Halving Effect: CryptoQuant Research Asserts Bull Cycle Endurance

Bitcoin Halving Effect: CryptoQuant Research Asserts Bull Cycle Endurance

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  • Bitcoin faces 13% drop in two days, anticipating halving event with expectations of recovery.
  • CryptoQuant analysis suggests continuation of Bitcoin’s bullish cycle, based on short-term reversal patterns.

According to CryptoQuant data, 48% of Bitcoin investment comes from short-term holders, while in a conventional bull cycle, between 84% and 92% of investment is typically contributed by these recent investors.

Bitcoin realized cap – OTXO age bands percentage. Source: CryptoQuant

This, described by analysts as a “pre-halving retracement,” anticipates Bitcoin’s halving event, a key moment for the cryptocurrency that is just around the corner, approximately 30 days away.

As with other CryptoQuant analysis we have covered on ETHNews, this is not the end of the Bitcoin bull cycle. Despite the recent drop, key indicators suggest that most of the current investment is coming from short-term holders, a pattern still far from that characteristic of previous bull cycle endings.

This, coupled with valuation metrics that do not yet reflect a market peak, points to a continuation of the uptrend.

The halving of bitcoin has raised different scenarios within the Wall Street investor sector, leading to a number of deductions that you can read about here on ETHNews.

These will leave us with a reduction from 6.25 BTC to 3.125 BTC per block mined from now on, thus increasing BTC appreciation opportunities for the next 5 years from $150,000 to $250,000 according to market research conducted by Standard Chartered Bank.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628