Number of Bitcoins in Circulation Hits ATH
•The number of Bitcoins held by long-term holders has hit an all-time high of 14.5 million BTC.
•On April 26, 2024, the next halving cycle will take place.
•Bitcoin is following a similar price trend to 2012 before and after the first halving event.
Volatility Attracts Long-Term Investors
Despite Bitcoin’s recent fall back below the $30,000 barrier, volatility has attracted investors who are looking to hold for the long haul. The amount of money made from each block grows in proportion to the price of Bitcoin, leading miners to invest in additional mining hardware and expand their operations. With 272 days left until the 2024 halving event, some analysts are expecting Bitcoin prices to make a new yearly high before then.
Fear & Greed Index Neutral on Market Outlook
The Fear & Greed Index currently sits at 55 out of 100, indicating that investors have a neutral outlook on the market as it stands right now. This could change depending on how Bitcoin’s price trends leading up to the halving event next year or if more institutional investors enter the space with ETFs being approved.
Impact of Halving Event on Mining Profitability
The upcoming halving event will have a negative impact on mining profitability due to reduced rewards per block mined. However, rising Bitcoin prices could help offset this decline as miners are encouraged to spend money on mining gear and energy when there is more profit potential from each block mined.
Conclusion
As we move closer towards April 2024 and another halving event, investors should keep an eye out for changes in investor sentiment and any significant fluctuations in Bitcoin’s price patterns which could indicate where prices will go over time.