Crypto Investment Firm Sees Bright Future for Bitcoin Amid Rising Accumulation
Galaxy Digital, a crypto investment firm, released a blog post highlighting a major bullish event on the horizon for Bitcoin.
The report stated that two supply events would affect BTC’s future, one bullish, while the other could be bearish.
Bullish catalyst: Bitcoin’s fourth halving event
The first bullish event is the fourth halving of Bitcoin, slated to take place in April 2024. Halving events occur every four years and reduce the number of new coins entering the market.
Historically, these halvings coincide with major uptrends in price, as tightening supply meets increased demand.
Galaxy Digital’s blog post states:
“Bitcoin’s next halving will bring the network’s inflation rate below 1%, with roughly 450 new Bitcoins being mined daily. Historically, Bitcoin’s three previous halvings (2012, 2016, 2020) have been pointed to as catalyzing subsequent bull runs, as existent demand quickly outstripped lower levels of new supply.”
The report also indicated that the 2024 halving would place BTC among the hardest existing assets known to humanity, lower only than historical store-of-value assets such as gold and silver.
Accumulation addresses fueling the rise
Galaxy Digital also notes a bullish trend of increasing Bitcoin accumulation. The on-chain data suggests ongoing asset accumulation, with the total number of addresses with a non-zero balance continuing to grow. Over 45 million addresses hold BTC, and many have exclusively received Bitcoin, meaning they have never spent it. These so-called “accumulation addresses” have spiked in the last month.
Bearish market trigger: Mt. Gox
The potential bearish trigger for the market is the possibility that a large supply of Bitcoin from the defunct crypto exchange Mt. Gox could flood the market as it is transferred to creditors.
However, Galaxy Digital says this is unlikely, based on its research and conversations with Gox creditors. The exchange’s bankruptcy trustee holds 141,686 BTC plus cash and BCH, according to September 2019 documents.
READ MORE: Bitcoin Provides Safe Harbor for Investors – InvestAnswers
Conclusion: The future of Bitcoin
Galaxy Digital’s report indicates a promising future for Bitcoin. The halving event and the rising accumulation addresses are positive signs for the world’s most popular cryptocurrency.
However, potential market triggers such as Mt. Gox’s supply could affect the market. Despite these potential risks, Bitcoin has seen significant adoption and mainstream recognition in recent years, and the future looks bright for the cryptocurrency.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
