PakGazette – Whales (BTC) are in a buying frenzy. This development coincides with the skyrocketing price of BTC in the ongoing bull run. According to Ali Martínez, on-chain analyst, Bitcoin whales have taken over 70,000 BTC in the last 48 hours.
Bitcoin Whale Accumulation Fuels Supply Concerns
In a publication in X, Martínez placed the value of the purchase at 7.28 billion dollars. With Bitcoin currently trading at $107,687, the BTC volume accumulated by whales has surpassed $7.5 billion.
Analysts suggest that this increase in demand from whales has continued to outstrip supply, driving the continued rise in prices. Some have expressed concern that a huge supply shortage will likely occur if this momentum continues.
In particular, a supply crisis occurs in the market when more investors buy an asset amid limited supply. For context, Bitcoin has a limited supply of 21 million BTC, and its scarcity is a key factor driving value.
Furthermore, only 450 BTC are mined per day. Therefore, the total Bitcoin mined in 48 hours is only 900 BTC, which is insignificant to meet the demand of Bitcoin whales.
Will shortages drive prices up?
This supports analyst views that a supply crisis could occur with the world’s leading digital currency. Although the cryptocurrency market always has willing buyers and sellers, observers argue that if participants anticipate a shortage of supply, they could become reluctant to sell.
Such a scenario of reduced supply combined with ever-increasing demand can drive up prices.
Martinez suggests that the Bitcoin market is preparing for further upward movement due to an imminent supply reduction. Meanwhile, institutional players have also recently increased their demand for Bitcoin.
However, the unpredictability of the cryptocurrency market could change things. The macroeconomic factors fueling increased demand for BTC could change and cause whales to lose their appetite for further accumulation. The next few days indicate in which direction the market trend will turn.
