Willy Woo, an on-chain bitcoin (btc) analyst, is sounding the bullish alarm, citing strong demand and declining supply as reasons for optimism. Carrying X, Woo noted that bitcoin absorbs an average of 607 million dollars a day as an asset in demand from new investors. In comparison, only $46 million of new supply is being created through mining.
bitcoin Receives Over $607 Million in Value Every Day, What Happens After Halving?
The bitcoin network is a proof-of-work platform that relies on miners for security and decentralization, making its transactions global and censorship-resistant. Although there are concerns about centralization, it seems that the extensive network of miners is more important to the platform, which explains its colossal valuation.
Miners are rewarded 6.25 btc after each block, which is equivalent to around $46 million, after each 24-hour cycle. However, the fiat value, as expected, changes depending on spot rates.
Woo says the growing demand, estimated at about $607 million per day, considers changes to the realized limit. It is a metric that shows the total amount investors have paid for the current btc in circulation. The total value takes into account the purchase price of each one.
While useful, Woo notes that the cap made, and therefore the level of demand injected into bitcoin, is conservative. The weakness arises from the realized limit that only captures on-chain transactions.
It is this change in imbalance, Woo notes, that may drive prices even higher in the coming sessions. The on-chain analyst sees the current trend accelerating further ahead of the next bitcoin halving scheduled for early April 2024.
The bitcoin halving occurs approximately every four years, reducing the new btc created per block by 50%. The on-chain analyst believes that this decrease in supply, coupled with the already strong demand, will drive prices up, rapidly increasing the realized limit.
Reddit plans to go public and buy btc and eth
Woo's optimism follows encouraging news that popular social media platform Reddit will invest some surplus cash in bitcoin and ethereum (eth). Recent reports technology/reddit-initial-public-offering.html” target=”_blank” rel=”noopener nofollow”>reveal that Reddit plans to go public, filing for an initial public offering (IPO) this week.
The endorsement of cryptocurrencies by a major technology company shows growing institutional adoption, a net benefit for investor confidence. So far, Reddit's IPO prospectus sample that its revenue increased by 20% in 2023.
The platform also has more than 70 million daily active users. Based on this, once it goes public, a significant portion of the funds are likely to be injected into btc and eth.
Featured image from Canva, TradingView chart
