U.Today – Bitcoin (BTC) Whales in Buying Frenzy

Bitcoin (BTC) whales are experiencing a buying frenzy, coinciding with a significant price surge in the current bull run. According to on-chain analyst Ali Martinez, these whales have accumulated 70,000 BTC over the last 48 hours.

Bitcoin Whale Accumulation Fuels Supply Concerns

In a post on X, Martinez estimated the value of this purchase at $7.28 billion. With Bitcoin trading at $107,687, the total BTC accumulated by whales has surpassed $7.5 billion.

Analysts suggest that the heightened demand from whales is outpacing supply, contributing to the ongoing price surge. There are concerns that this could lead to a significant supply crunch as demand continues to increase.

A market supply crunch occurs when the number of buyers exceeds the available supply of an asset. Bitcoin has a fixed supply of 21 million BTC, and this scarcity is a crucial factor in its value. Additionally, only 450 BTC are mined daily, meaning just 900 BTC are produced every 48 hours, which is not enough to satisfy whale demand.

Will Scarcity Propel Prices?

This situation aligns with analysts' predictions that a supply crunch may be on the horizon for the leading digital currency. While the crypto market generally has a mix of buyers and sellers, the expectation of a supply crunch could lead to a market reluctance to sell.

A scenario combining reduced supply with rising demand could further drive prices upward.

Martinez believes the Bitcoin market is set for additional gains due to this expected supply reduction. Institutional investors have also recently ramped up their Bitcoin demand.

However, the unpredictable nature of the crypto market means that factors influencing this increased demand could change, potentially dampening the whales' appetite for further accumulation. The coming days will indicate the market trend's direction.

This article was originally published on U.Today