{"id":313570,"date":"2024-05-31T00:40:11","date_gmt":"2024-05-30T19:10:11","guid":{"rendered":"https:\/\/dripp.zone\/news\/bitcoin-whales-make-a-comeback-as-markets-adjust-to-new-phase-of-scarcity-crypto-news\/"},"modified":"2024-05-31T00:45:17","modified_gmt":"2024-05-30T19:15:17","slug":"bitcoin-whales-make-a-comeback-as-markets-adjust-to-new-phase-of-scarcity-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/bitcoin-whales-make-a-comeback-as-markets-adjust-to-new-phase-of-scarcity-crypto-news\/","title":{"rendered":"Bitcoin Whales Make a Comeback as Markets Adjust to New Phase of Scarcity – Crypto News"},"content":{"rendered":"

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Bitcoin whales are taking advantage of the current correction to acquire BTC at discounted rates as the Puell Multiple shows markets are adjusting to a new phase of scarcity after the April 20 halving.<\/p>\n

Bitcoin Price Primed For Recovery<\/strong><\/h2>\n

BTC has shown weakness since May 21, taking a downward chop, followed by a consolidation before a mid-week cascade. However, the upside potential remains viable amid a sustained bullish momentum.<\/p>\n

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The BTC\/USDT trading pair shows a prevailing bullish outlook on the one-day timeframe as it consolidates along an ascending trendline.<\/p>\n

BTC\/USDT 1-day chart<\/figcaption><\/figure>\n

Tailwinds sprout from growing institutional adoption. It follows the landmark Bitcoin spot ETF (exchange-traded funds) approvals and the recent listing of physically backed BTC and Ethereum (ETH) exchange-traded products (ETPs) on the London Stock Exchange<\/a> (LSE).<\/p>\n

Meanwhile, the Puell Multiple indicator has reached the discount range after a year. Researchers at CryptoQuant say<\/a> investors may interpret this \u201cas a sign that the market is adjusting to a new phase of scarcity, potentially preparing for a rally.\u201d<\/p>\n

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Bitcoin Market Value Based On Its Mining Activity<\/strong><\/h2>\n

The Puell Multiple indicator is a tool that evaluates Bitcoin value based on its mining activity. It is the ratio between daily revenue and the 365-day moving average.<\/p>\n

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When this indicator reaches the discount range after a year, it typically indicates that the value of Bitcoin may be undervalued compared to historical averages.<\/p>\n

This could present a potential buying opportunity for investors who believe that the price of Bitcoin will likely increase in the future.<\/p>\n

With reduced mining rewards following the fourth BTC Halving<\/a> on April 20, Bitcoin miners continue to suffer, until that time when Bitcoin price rises significantly to compensate for this reduction. Dwindling daily revenues for miners after the Bitcoin halving leads to a decrease in the Puell Multiple.<\/p>\n

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