Bitcoin Price Will Boom Anytime According to On-Chain Data
The Historic Third Upcoming Halving Event Of Bitcoin is going to be held in 15 days, and everybody is discussing the price.
Halving is an event happens every 210,000 blocks. The reward per block is reduced to 1/2 after halving. The Block reward is reduced from 12.5 BTC to 6.25 BTC.
One well-known CEO recently indicated that the halving event ahead in May is like a “perfect storm” for bitcoin, while information updated by blockchain data firm CoinMetrics, a report on why the event could take a short period price decline that could develop the Foundation for positive price increment in future.
Glassnode, an intelligence platform, and blockchain data have released many on-chain data metrics that show investors are confident about the halvings strengthening effect on the bitcoin price.
“In the weeks leading up to this milestone, a number of on-chain metrics are suggesting that investors agree with [the bullish sentiment around the halving] and are increasing their positions and holding tight,” reads a recent Glassnode Insights post.
Investors Are Optimistic About The Bitcoin Price – Data Reflects
Hence, on-chain data, it is hard to access in kind the detect of user’s who are operating around their Bitcoin, Glassnode cleared out some general trends related to action on the Bitcoin blockchain in their recent post.
42.83% of the distributing Bitcoin supply has not been in motion from the last two years for one. This is a 10.4% Positive from the same time last year, instead of the clear cut decline in the price that held in March. According to Glassnode, this latest update indicates long life investors were not shaken by the rejection of the crypto-asset market in March.
“In addition, HODLer Net Position Change remained positive as BTC plummeted and, in the latter half of April, climbed to yearly highs suggesting that not only did long term investors hold steady – they capitalized on the discounted BTC and increased their positions,” adds the post from Glassnod
According to Glassnode, chain records also clear that a big number of nodes that were moving around the price crash in March have not maintained activity, which could mean that traders who create the bottom are still holding on to their newly bought coins.
“While this could also mean that the BTC sent to exchanges during the pandemonium has been static in their wallets since exchanges balances have fallen by over 10% since the highs seen in February,” adds the Glassnode post. “Withdrawal of funds from trading platforms could further reinforce the idea of more bullish long term expectations from traders.”
After all, there are signs that point out the interest from retail investors has increased, with the number of minimum balance Bitcoin nodes recently hitting ever new growth. The data also shows incremental activity from whales, with the number of addresses with min. 1000 Bitcoin in them on the raise. As per Glassnode these whale addresses also appear to be more collections of Bitcoin as they did in the last Bitcoin halving event especially.
“Despite the instability and uncertainty in both traditional and crypto markets, on-chain metrics point towards an optimistic outlook from investors as the halving approaches,” adds the Glassnode post.
