TechFlow news, crypto analytics firm CryptoQuant released a research report indicating that the supply shock from Bitcoin's halving may not have as significant an impact on Bitcoin's price as expected. According to CryptoQuant, increased demand from investors holding large amounts of Bitcoin is the "key driver" behind price movements, rather than the halving itself.
Although Bitcoin halvings typically reduce supply and thus push prices higher, CryptoQuant noted that between 2021 and 2023, demand from long-term holders exceeded supply over extended periods.
The current gap between demand and supply is larger than ever before, suggesting that even with the halving, its impact on Bitcoin's price may be less pronounced than in previous cycles.
In addition, newly issued Bitcoin has dropped to just 4% of total supply, significantly lower than prior pre-halving levels.
Bitcoin's open interest (OI) has reached as high as $783.6 billion, with only 11 days remaining until the halving. Rekt Capital pointed out that even if Bitcoin's price declines before the halving, it could rebound sharply.
