In the first quarter of 2024, Bitcoin (BTC) experienced a historic moment by reaching an all-time high. This performance was followed by a correction phase in the following weeks, which was to be expected after such a strong increase.
Nevertheless, confidence among large investors, the so-called whales, remains strong ahead of the upcoming halving event.
Whales are buying Bitcoin en masse
A recent rapport from the blockchain analysis platform Santiment shows that BTC whales have made large purchases in the past three months. Collectively, they purchased 319,310 BTC, with a total value of approximately $21.6 billion.
At the same time, the report shows an opposite trend among smaller investors, often called retail traders, who sold 105,260 BTC in the same period.
The importance of the Bitcoin halving
The significant increase in Bitcoin ownership by whales is widely considered a positive signal for the market. This growing interest is especially important in view of the upcoming ‘halving’ event, which takes place every four years and halves the reward for miners. This process reduces the new supply of Bitcoin, which has historically led to increased demand due to more limited supply.
The influence of America’s economic policies on Bitcoin
Anthony Pompliano, a leading Bitcoin enthusiast, highlights an additional reason for Bitcoin’s potential appreciation, rooted in United States economic policy. He argues that the heavy interest burden on the US national debt may force the country to turn on the money press, resulting in monetary inflation. This increase in the money supply, Pompliano said, would devalue the dollar but at the same time boost Bitcoin’s price.
In support of his view, Pompliano cites that the dollar has lost approximately 20% of its value since 2020, while Bitcoin has experienced a remarkable increase of 800%. He expects this trend to continue, increasingly positioning Bitcoin as a bastion of financial stability amid economic uncertainty. Pompliano is adamant in his belief that Bitcoin will not only continue to appreciate, but also reach new all-time highs in the short term.
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Source: https://newsbit.nl/crypto-whales-kopen-massaal-bitcoin-in-het-eerste-kwartaal-van-2024/
