U.Today – (BTC) whales are in a buying frenzy. This development coincides with the BTC price surge in the ongoing bull run. According to on-chain analyst Ali Martinez, Bitcoin whales have grabbed 70,000 BTC in the last 48 hours.
Bitcoin Whale Accumulation Fuels Supply Concerns
In an article on X, Martinez put the value of the purchase at $7.28 billion. With Bitcoin currently trading at $107,687, the volume of BTC accumulated by whales has surpassed $7.5 billion.
Analysts suggest that this increased demand from whales has continued to outstrip supply, causing prices to continue to rise. Some have expressed concerns about the likelihood of a huge supply crunch if this dynamic continues.
Notably, a market supply crunch occurs when more investors purchase an asset in a context of limited supply. As a reminder, Bitcoin has a limited supply of 21 million BTC, and its scarcity is a key factor in value creation.
Additionally, only 450 BTC is mined daily. Therefore, the total Bitcoin mined in 48 hours is only 900 BTC, which is insignificant in meeting the demand of Bitcoin whales.
Will scarcity drive up prices?
This supports analysts’ views that a supply crisis could arise with the world’s leading digital currency. Although the crypto market always has willing buyers and sellers, observers say 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 another upward move due to an impending supply reduction. Meanwhile, institutional players have also recently increased their demand for Bitcoin.
However, the unpredictability of the cryptocurrency market could change that. The macroeconomic factors fueling increased demand for BTC could change and cause whales to lose their appetite for further accumulation. The next few days signal which direction the market trend will move.
This article was originally published on U.Today
