U.Today - Bitcoin (BTC) whales are in a buying frenzy. This development coincides with soaring price movement for BTC in the ongoing bull run. According to Ali Martinez, an on-chain analyst, Bitcoin whales have snapped up 70,000 BTC in the last 48 hours.
Bitcoin whale accumulation fuels supply concerns
In a post on X, Martinez placed the value of the purchase at $7.28 billion. With Bitcoin currently trading at $107,687, the volume of BTC accumulated by whales has surged above $7.5 billion.Analysts suggest that this increased demand by whales has continued to outstrip supply, driving the continued price metric surge. Some have expressed concerns that a huge supply crunch will likely occur if this momentum continues.
Notably, a market supply crunch happens when more investors buy an asset amid a limited supply. For context, Bitcoin has a limited supply of 21 million BTC, and its scarcity is one key factor in driving value.
Additionally, only 450 BTC are mined daily. Hence, the total Bitcoin mined within 48 hours is just 900 BTC, which is insignificant in meeting the demand of Bitcoin whales.
Will scarcity propel prices?
This supports analysts’ views that a supply crunch might occur with the world’s leading digital currency. Although the crypto market always has willing buyers and sellers, observers argue that if participants anticipate a supply crunch, they might become reluctant to sell.Such a scenario of reduced supply mixed with steadily increased demand can push prices higher.
Martinez suggests that the Bitcoin market is gearing up for further upward movement due to an impending reduction in supply. Meanwhile, institutional players have also increased their demand for Bitcoin recently.
However, the unpredictability of the crypto market might change things. The macroeconomic factors fueling the increased demand for BTC could change and leave whales losing their appetite for more accumulation. The coming days signal which way the market trend will swing.