Bitfinex: Supply and Demand Forecasts after Bitcoin Halving
Date: 2024-04-24 Author: Oliver Abernathy Categories: BUSINESS
Bitfinex experts expressed the opinion that after the recent Bitcoin halving, demand for this asset may exceed supply by five times. According to their forecasts, the daily volume of Bitcoin issuance is gradually decreasing and could reach $40 million to $50 million per day in the near future. Subsequently, according to Bitfinex, this figure may decrease to $30 million per day.
Reduced Production and Increased Costs
This decline is facilitated by both the withdrawal of some mining companies from the market and the increase in costs for cryptocurrency mining. Bitfinex also indicates that miners may reduce their Bitcoin sales due to the need to rebuild their reserves.
The average daily inflow into spot Bitcoin ETFs is about $150 million, which significantly exceeds supply. This circumstance, according to Bitfinex experts, can lead to a fivefold gap between supply and demand.
Investors Transfer Assets to Cold Storage
Some investors are also withdrawing their assets from large exchanges, preferring cold storage in anticipation of rising prices. This phenomenon, according to Bitfinex, has led to the maximum outflow of Bitcoin from exchanges since the beginning of 2023.
In general, Bitfinex analysts see prospects for growing interest in Bitcoin and its long-term price dynamics, based on current trends in the cryptocurrency market.
