Bitcoin Halving ‘Actually Different This Time,’ Says Grayscale: ‘Sellers Show Their Hand’ At $48K
By Benzinga
The upcoming Bitcoin (CRYPTO: BTC) halving event is "actually different" from previous ones, according to Grayscale Investments, the world's largest crypto asset manager.
In the firm's latest report, recent regulatory approval of spot Bitcoin exchange traded funds, or ETFs, has transformed the cryptocurrency market, leading to mainstream adoption and potentially absorbing selling pressure.
It has also pushed ETFs to top the charts in asset inflows in just one month to be among the Top 25 Global ETFs.
The report highlights the rise in onchain activity, led by ordinal inscriptions with 59 million NFT collectibles inscribed.
As of February, the activity generated more than $200 million in transaction fees for miners.
Going forward, the trend is likely to continue to be driven by “renewed developer interest and ongoing innovations on the Bitcoin blockchain.”
Miners have strengthened their position ahead of the halving by raising funds through equity or debt issuances and selling reserves.
Grayscale notes that positive macro-economic developments coinciding with previous Bitcoin halving events, such as the European debt crisis in 2012 and the COVID-19 pandemic stimulus measures in 2020, have driven investors towards Bitcoin as a hedge against inflation fears.
"Bitcoin's future shines brightly," concludes the report.
Analysts anticipate a struggle for the crypto king to overcome the $48,000 mark.
Lambda, a digital markets research agency, noted on X that “sellers are showing their hand around 48-50K,” suggesting a lack of further buyer interest at these levels. This is based on the order book heatmap which reflects many offers above the current price and not many bids below.
Bitcoin orderbook 📊
Here's a few things that we are watching to start the week:
Last week we saw buyers step in, for the first time in more than 10 days – showing their hand on the bid side. https://t.co/kYwxbPPdtb
This observation was back when BTC was trading ~44k – now… https://t.co/Rspkup9eIP pic.twitter.com/DMN2hBmXnC
— Lambda (@lambdamarkets1) February 12, 2024
On the other hand, crypto investor Matthew Hyland expressed caution, “Bitcoin at $44,000 will now be the new support that must be held. Any weekly close below would be extremely damaging.”
Crypto chart analyst Ali Martinez anticipates a possible brief correction, with the next significant resistance level for Bitcoin seen at around $57,000. In another tweet, Ali indicates that Bitcoin has entered a brief correction phase wherein the Market Value to Realized Value exceeded the 11.5% level marking a "cautionary signal for $BTC traders!"
With only 67 days remaining until the Bitcoin halving event, price predictions leading into the event differ. Some expect Bitcoin to reach all-time highs, while others remain open to the possibilities of correction, rally or market top.
Three halvings have happened since 2009. The first halving was on Nov. 28, 2012; the second event was on July 9, 2016; and the third was on May 11, 2020.
