Kraken’s BTC Influx Sparks Bull Run Speculation

According to data provided by on-chain data platform CryptoQuant, Kraken documented a substantial influx of BTC, fueling speculation about potential preparations for a bull run in the most prominent cryptocurrency.

Since 2018, the crypto exchange has received the most significant incoming funds, totaling 14,924 BTC.

While high-volume exchange inflows are typically associated with short-term Bitcoin price declines, they can also serve as catalysts for price increases.

Observers of the market believe that the recent influx could surpass the $30,000 milestone and that this level could provide fundamental support for the next significant rally.

Due to the legal losses suffered by Grayscale and Ripple in lawsuits filed by the US Securities and Exchange Commission (SEC), as well as the prospective approval of spot Bitcoin ETFs, optimism has also emerged in the cryptocurrency market.

Notably, the SEC-Ripple case is unlikely to be resolved until at least 2025, and prominent asset management firms like BlackRock will unlikely have their spot Bitcoin ETF applications approved before 2024, barring a surprise.

On the macroeconomic front, the US government’s last-minute decision to avoid a closure has sparked the anticipated Bitcoin rally.

Due to macroeconomic developments and the upcoming block reward halving scheduled for the second quarter of 2024, the largest cryptocurrency is presently exhibiting strength.

The halving of block rewards is a significant event that occurs approximately every four years in a cryptocurrency network and halves the supply of newly minted coins.

This event also halves the reward per block provided to miners. The objective of halving the block reward is typically to manage the supply and demand of a cryptocurrency, thereby increasing its scarcity and value.

Bitcoin, Litecoin, Bitcoin Cash, Zcash, and Bitcoin SV are the only cryptocurrencies with a block reward halving mechanism.

Examining the past, it is clear that the three previous Bitcoin block reward halvings caused price increases. Moreover, investors view the block reward halving as one of the best indicators of a Bitcoin price increase.

In this context, investors tend to assume that investing in Bitcoin as the block reward nears will yield greater returns.