CryptoQuant: The Bitcoin halving effect may be less than expected, and the increase in BTC investor demand is a key driver of BTC prices

ChainCatcher news, the crypto analytics company CryptoQuant has released a research report indicating that the supply shock from Bitcoin halving may not have as significant an impact on Bitcoin prices as expected. According to CryptoQuant, rather than the effects of halving, the increased demand from investors holding large amounts of Bitcoin is the "key driver" of Bitcoin prices.

Although Bitcoin halving typically reduces supply, thereby pushing prices up, CryptoQuant points out that between 2021 and 2023, there were several instances where the demand from long-term holders exceeded the supply during the same period.

The current supply-demand gap is larger than ever, suggesting that even with halving, the impact on Bitcoin prices may not be as pronounced as in the past.

Additionally, the total issuance of Bitcoin has dropped to only 4% of the total supply, far below the ratio before previous halvings.

Bitcoin open interest (OI) has reached $783.6 billion, with only 11 days until halving. Rekt Capital notes that even if Bitcoin prices decline before halving, they may quickly rebound.