CryptoQuant: The halving effect of Bitcoin may not meet expectations, the increased demand from BTC investors is the key driving factor for BTC price

Golden Finance reports that crypto analysis company CryptoQuant has released a research report suggesting that the supply shock of Bitcoin halving may not have as significant an impact on Bitcoin's price as expected. According to CryptoQuant, rather than the effect of halving, it is the increased demand from investors holding large amounts of Bitcoin that is the "key driving factor" for its price. Although Bitcoin halvings usually reduce supply and thus push up prices, CryptoQuant points out that there were several times during 2021-2023 when long-term holder demand exceeded supply in the same period. The current gap between supply and demand is larger than ever before, indicating that even with halving, its impact on Bitcoin's price may not be as significant as in the past. In addition, total issuance of Bitcoins has dropped to just 4% of total supply, far lower than before previous halves. Open interest (OI) for bitcoin contracts stands at $783 billion USD with only 11 days left until halving. RektCapital suggests that even if Bitcoin's price falls prior to halving, it could rebound quickly.