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Bitfinex Forecasts Tighter Bitcoin Supply Post Halving
(Originally posted on : Crypto News – iGaming.org )
Following Bitcoin’s latest halving event, Bitfinex analysts predict a big shift in market dynamics, projecting that demand for the cryptocurrency could outpace its supply by up to five times. The halving process has reduced the mining reward from 6.25 to 3.125 BTC per block, leading to a decreased daily addition of new Bitcoin into circulation, estimated at $30 million worth per day.
According to Bitfinex, this reduction aligns with a sharp increase in average daily inflows into U.S. spot ETFs, which significantly exceed the new BTC supply, reporting over $150 million. This divergence between supply and demand could create substantial market pressure.
“With the daily issuance rate declining post-halving, we estimate that the new supply added to the market (new BTC mined) would amount to approximately $40-$50 million in USD-notional terms based on issuance trends. It is expected that this could possibly drop over time to $30 million per day, including active and dormant supply as well as miner selling, especially as smaller miner operations are forced to shut down shop,” noted the analysts at Bitfinex.
The recent halving also correlates with miners reducing their Bitcoin reserves to fund necessary upgrades for more efficient post-halving operations. Data from Glassnode reveals a decrease of over 18,000 BTC in miner-held coins in the six months leading up to the event, indicating preparations for diminished rewards.
Adding to the market’s complexities, Bitfinex reports a growing trend among investors taking direct custody of their Bitcoin, rather than relying on intermediary financial products, which further strains the available supply.
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