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On-chain Bitcoin (BTC) analyst Willy Woo has issued an optimistic alert, citing strong demand and continuously decreasing supply as reasons for optimism. Speaking about X, Woo pointed out that Bitcoin, as an asset demanded by new investors, absorbs an average of $607 million per day. In contrast, only $46 million of new supply is created through mining.
Bitcoin's daily value exceeds $607 million, what happens after the halving?
The Bitcoin network is a proof-of-work platform that relies on miners for security and decentralization, making its transactions censorship-resistant and global. Despite concerns about centralization, the extensive miner network seems to be more important for the platform, explaining its massive valuation.
Miners receive a reward of 6.25 BTC after each block, equivalent to about $46 million every 24 hours after a cycle. However, as expected, the fiat currency value will fluctuate with changes in the spot exchange rate.
Woo stated that the continuously expanding demand, estimated at about $607 million per day, considering changes in realized caps, is an indicator showing the total amount investors are paying for currently circulating BTC. The total value takes into account the purchase prices of each commodity.
Woo pointed out that, while useful, the realized cap and the level of demand injected into Bitcoin are conservative. This weakness stems from capturing only the realized cap of on-chain transactions.
Woo believes that it is precisely this imbalance shift that may drive prices higher in the coming trading days. This on-chain analyst believes that the current trend will further accelerate before Bitcoin's next halving in early April 2024.
Bitcoin halves approximately every four years, reducing the creation of new bitcoins per block by 50%. This on-chain analyst believes that the reduction in supply, coupled with already strong demand, will drive prices up, quickly raising the realized cap.
Reddit plans to go public, acquiring BTC and ETH
Before Woo expressed optimism, there were reports that popular social media platform Reddit plans to invest some excess cash into Bitcoin and Ethereum (ETH). Recent reports indicate that Reddit plans to go public and applied for an initial public offering this week.
A large tech company's support for cryptocurrencies indicates increasing institutional adoption, which is a net positive for investor confidence. So far, Reddit's IPO prospectus shows a 20% revenue growth in 2023.
The platform also has over 70 million daily active users. Based on this, once listed, a significant amount of funds is likely to flow into Bitcoin and Ethereum. |
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Post time 5-3-2024 20:42:46