Massive bullish catalyst for Bitcoin looms as accumulation spikes, Galaxy Digital says – but there’s a catch
Crypto investment firm Galaxy Digital says a major bullish catalyst is on the horizon for Bitcoin (BTC) as accumulation increases.
But in a recent blog post, the investment firm also says a possible bearish event is looming.
“Two primary supply events loom in the future, one bullish and one potentially bearish.”
Per Galaxy Digital, the bullish catalyst is Bitcoin’s fourth halving event set to occur in April 2024. Halving events occur every four years and reduce the amount of new BTC entering the market. The tightening of supply has historically coincided with large movements to the upside in Bitcoin’s price.
“Bitcoin’s next halving (estimated to take place in April 2024) will bring the network’s inflation rate below 1% with approximately 450 new bitcoins being mined per day. Historically, Bitcoin’s three previous halvings (2012, 2016, 2020) have been pointed to as catalyzing subsequent bull run, as existing demand quickly outpaced lower levels of new supply…
The 2024 halving should remain in focus for the simple reason that bitcoin’s inflation rate falling below 1% would place it among the most difficult existing assets known to mankind, lower than historical stores of value such as gold and silver.
Galaxy Digital is also noticing another bullish trend with increasing Bitcoin accumulation.
“On-chain data indicates ongoing accumulation of Bitcoin. The total number of addresses with a non-zero balance continues to shoot higher. More than 45 million addresses have BTC. A large number of addresses have exclusively received Bitcoin – they have never spent . The number of so-called ‘accumulation addresses’ has increased in the last month.”
The potential bearish market trigger is the possibility that a large supply of Bitcoin from the bankrupt and defunct crypto exchange Mt. Gox could flood the market when it is transferred to creditors. However, Galaxy Digital says this seems unlikely.
“As a result of the 2014 exchange hack, the Mt. Gox bankruptcy trustee has 141,686 BTC plus cash and BCH according to September 2019 documents. Based on our research and conversations with Gox creditors, we do not expect there to be a significant delivery event for BTC resulting from distributions to creditors.”
Bitcoin is trading at $28,287 at the time of writing, up 3.2% in the last 24 hours.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered straight to your inbox
Check price action
Follow us on TwitterFacebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and trades are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured image: Shutterstock/Tithi Luadthong
