The market for digital currencies is witnessing a surge while Bitcoin's value remains above $69,000, with current trading at approximately $69,840. Investors are optimistic as the much-awaited Bitcoin halving event approaches in less than a month, expecting a positive impact on the cryptocurrency's future performance.
Significant accumulations by Bitcoin 'whales', investors holding substantial amounts of the cryptocurrency, indicate a positive outlook as the halving draws near. Data from Santiment reveals an increase in the share of Bitcoin held by wallets with balances between 1,000 to 10,000 BTC, reaching 25.17% currently. Additionally, wallets holding between 10,000 to 100,000 BTC have shown a spike in their proportion within a 19-day period in March.
In line with the behavior of large Bitcoin holders, Glassnode reports a decline in Bitcoin deposits to exchanges, suggesting a potential price surge. The decrease in exchange inflows from March 5 to March 25 is seen as an indication that investors are holding onto their assets in anticipation of the halving event.
Glassnode analyst Marcin Miłosierny notes robust buying interest through ETF channels, emphasizing the impact on Bitcoin's supply dynamics by long-term holders. This activity, combined with the halving's supply cut, sets the stage for a potential price increase.
As the halving event approaches, market analysts predict Bitcoin will maintain higher consolidation levels. Analysts, such as Daan Crypto Trades, speculate that if Bitcoin holds above $70,000, the cryptocurrency could potentially reach a six-figure valuation, aiming for new all-time highs in the near future.
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