U.Today – (BTC) Whales are in a buying frenzy. This development coincides with BTC's price surge during the ongoing bull market. According to on-chain analyst Ali Martinez, Bitcoin whales have jumped 70,000 BTC in the past 48 hours.
Bitcoin whale accumulation raises supply concerns
In a post on X, Martinez pegged the acquisition price at $7.28 billion. Bitcoin is currently trading at $107,687, and the amount of BTC accumulated by whales has soared to over $7.5 billion.
Analysts suggest that increased demand from this whale continues to outstrip supply, causing prices to continue to rise. Some have expressed concern that if the momentum continues, there will be a major supply crunch.
In particular, a market supply contraction occurs when more investors buy an asset while supply is limited. For context, Bitcoin's supply is limited to 21 million BTC, and its scarcity is one of the key factors that drives its value.
Moreover, only 450 BTC is mined every day. Therefore, the total Bitcoin mined within 48 hours is only 900 BTC, which is insignificant to meet the demand of Bitcoin whales.
Will scarcity drive up prices?
This confirms analysts' views that there could be a supply shortage in the world's leading digital currency. Observers argue that while there will always be willing buyers and sellers in the cryptocurrency market, participants may be less willing to sell if they anticipate a lack of supply.
In such a scenario of steadily increasing demand and decreasing supply, prices are likely to rise.
Martinez suggests that due to the impending supply decline, the Bitcoin market is gearing up for further upside. Meanwhile, institutional investors have also increased their demand for Bitcoin recently.
However, things may change due to the unpredictability of the cryptocurrency market. The macroeconomic factors driving increased demand for BTC may change, discouraging whales from accumulating further. The next few days will tell us which way the market trend will swing.
This article was originally published on U.Today
