Pre-Halving Accumulation Surge: Bitcoin Eyes $72.8k Horizon

Wallets holding between 10-10k Bitcoin (BTC) amassed a 20-month high of 13.19 million BTC on March 24th, indicating increased investor interest ahead of the halving event. Analysts believe this accumulation could drive BTC's price towards $72.8k, supported by supply squeeze and growing demand from ETFs.

Is Pre-Halving Bullishness Leading to a $72.8k Bitcoin Horizon?

As investors flock to Bitcoin in anticipation of the economically significant halving event, wallets holding modest amounts of the cryptocurrency are amassing substantial supplies. According to Santiment, a leading on-chain analytics firm, wallets holding between 10 and 10k coins recently accumulated a staggering 51,959 BTCs, one of the largest single-day purchases in recent memory.

Significant Accumulation by Mid-Tier Wallets

This substantial accumulation represents approximately 0.263% of Bitcoin's total circulating supply and has pushed the total supply held by this cohort to a 20-month high of 13.19 million. Moreover, the ratio of supply held by this group has reached 67%, its highest level since July 2023.

Santiment suggests that further accumulation activity is likely, considering the impending halving. This quadrennial event reduces block rewards by half, potentially triggering significant bullish momentum for Bitcoin. The supply squeeze, coupled with growing demand from new US spot ETFs, could further inflate the price of Bitcoin.

Decline in Stablecoin Holdings

Interestingly, the stablecoin reserves held by these whales and sharks have dropped sharply. Wallets holding between 100k and 10 million USDTs have seen their holdings fall to their lowest levels since January 2023. Similarly, wallets holding between 100k and 10 million USDCs have reached their lowest levels since March 2023.

This indicates that future accumulation activity may not be driven solely by stablecoins. Instead, investors may be holding stablecoins as dry powder, available for strategic investments or emergencies.

Next Target: $72,800

At the time of writing, Bitcoin is trading just above $71k, according to CoinMarketCap. Technical analyst Ali Martinez believes the cryptocurrency could rise up to $71,800 in the short term, provided support at $70,400 holds.

Martinez has also forecasted that Bitcoin could reach $72,880 once it emerges from its corrective phase. It remains to be seen how accurate these forecasts will be, but the bullish sentiment surrounding Bitcoin in the lead-up to the halving paints a promising picture for the world's largest cryptocurrency.