While the leading cryptocurrency Bitcoin is approaching $ 50,000 with the rise that started last week, it is currently showing horizontal movements at the level of $ 48,000.
While this rise pleases investors, expectations for further rallies from BTC continue.
At this point, a new report came from Glassnode that will make investors happy.
Glassnode stated in a recent report that Bitcoin may see a steady price increase following the halving event due to lower selling pressure and new interest in native Bitcoin-based applications.
Stating that Bitcoin's technical fundamentals and use cases have increased significantly in the past year, Glassnode analysts said that the halving, which has historically brought the rise compared to previous halving cycles, has made Bitcoin “stronger”.
“Despite short-term miner revenue challenges, underlying on-chain activity and positive market structure updates make this halving fundamentally different.
Although long heralded as digital gold, recent developments show Bitcoin is evolving into something even more significant.
Historically, the possibility that all newly mined Bitcoins could be sold has brought potential selling pressure to the market, which has affected prices.
Currently, 6.25 Bitcoins mined per block equates to approximately $14 billion annually (assuming a bitcoin price of $43,000). In other words, an annual purchasing pressure of $14 billion is needed to maintain current prices.
However, with the halving, the purchasing pressure requirements will drop to $7 billion annually as the rewards drop to 3.25 Bitcoins per block. This will alleviate the sales pressure experienced after the halving.
As a result, Bitcoin is preparing for a strong rally that will start after the halving.”
Glassnode also noted that halvings make it much more difficult to obtain or mine new Bitcoins, noting that historically halvings occur before bull runs.
Bitcoin continues to be traded at $48 at the time of writing.
*This is not investment advice.
