Analysts at CryptoQuant have discovered that Bitcoin demand from long-term holders has surpassed BTC issuance for the first time in history, potentially fueling a price rally.

According to a recent research report from CryptoQuant, the cohort of long-term holders is currently acquiring around 200,000 BTC per month, significantly exceeding the monthly issuance of approximately 28,000 BTC.

With the upcoming halving expected to reduce monthly issuance to about 14,000 BTC, this surge in demand signifies a notable shift in Bitcoin’s supply-demand dynamics, as noted by analysts at CryptoQuant.

Tezos co-founder Arthur Breitman views the halving as a “reduction in security budget,” suggesting that while the reward change for miners could have short-term benefits for the Bitcoin ecosystem, adjustments to emission policies will be necessary to maintain security in the long run.

Despite differing opinions among crypto executives, the upcoming halving in mid-April will see mining rewards reduced from 6.25 to 3.125 BTC per block. This process is automatic, with the Bitcoin network protocol adjusting itself upon reaching a programmed block height. The completion of mining all 21 million BTC is projected around 2140, after which miners will depend solely on transaction fees for rewards.

As Bitcoin miners brace for reduced rewards, it remains to be seen how the market will react before and after the halving. Some anticipate price declines due to limited dollar liquidity during this period, while others believe that the halving’s impact may already be factored into the market, pointing to successful spot ETF approvals.

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