According to CryptoQuant, the growth in demand will be the main factor affecting prices after halving. The crypto market analytics platform has noticed a decrease in the effects of Bitcoin halving events, with the upcoming event expected to have a smaller impact on the value of BTC.

In their latest weekly report, analysts from CryptoQuant explained that the diminishing impact of halving is due to the decreasing new issuance of BTC relative to the number being sold by long-term holders. This points towards demand becoming the main driver of BTC prices after halving.

The report shows that Bitcoin monthly issuance now only makes up 4% of the total BTC supply available, compared to much higher percentages before previous halving events. Demand from long-term holders has also surpassed issuance for the first time, with these holders adding around 200,000 BTC to their balances monthly.

Analysts predict that low long-term holder spending is correlated with the price cycle, with BTC experiencing price lows during periods of low long-term holder spending. With monthly issuance expected to decrease after the upcoming halving, demand growth will play a significant role in driving BTC prices upwards.

Previous price rallies after halving events were fueled by rising demand growth from large holders and whales. The recent increase in demand growth, reaching its highest level ever at 11% month-on-month, has led to BTC reaching a new all-time high before the halving event.

However, analysts from CryptoQuant also anticipate an increase in selling pressure from OG BTC holders after the halving, as their spending has been historically low but is expected to increase post-halving.