The Bitcoin price rose above the level of $71,000 in recent days for the first time since March 15. At the moment we have to make do with a Bitcoin price of $ 70,300, but very cautiously optimism is starting to return.

But what is contributing to the sudden bullish sentiment surrounding Bitcoin?

Whales are buying huge amounts of Bitcoin

Major investors are busy adding huge amounts of Bitcoin to their portfolios again. Data from the market analysis platform Santiment shows that the number of wallets with 1,000 to 10,000 Bitcoin has increased and the number of wallets with 10,000 to 100,000 Bitcoin is also growing at the moment.

The accumulation of Bitcoin by whales is supported by the data at the exchanges. According to Glassnode, the number of deposits at well-known exchange wallets has been in decline since March 5.

That decline continued on March 19, when the stock fell more than 9 percent and closed below the $65,000 level. The less Bitcoin flows to the stock exchanges, the less the potential selling pressure and that is bullish for the Bitcoin price.

Bitcoin halving positive for the price?

In a recent report, Glassnode said that the “significant purchasing power of the ETFs will overshadow the traditional effect of halvings. According to Marcin Milosierny of Glassnode, Bitcoin’s supply dynamics are increasingly determined by the behavior of long-term investors.

That in itself makes sense, because the impact of the halvings continuously decreases. While the block reward dropped from 50 to 25 units during the first halving, we will go from 6.25 to 3.125 Bitcoin per block at the April halving.

Although that sounds less impressive, it is still a significant amount. Now miners produce 900 Bitcoin per day. In April, production drops to 450 units.

This means that on an annual basis we get 450 x 365 days x $70,000 less Bitcoin on the market for $11.49 billion. You cannot tell me that the halving does not have a positive impact on the price.

If someone came forward today and said he wanted to buy $11.49 billion worth of Bitcoin every year, the price would shoot through the roof.

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