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Bitcoin Miners Expected to Liquidate $5 Billion After Halving
A notable outflow of Bitcoin from miners could be on the horizon in the months following the upcoming halving event. Markus Thielen, the head of research at 10x Research, estimated that Bitcoin miners have the potential to liquidate approximately $5 billion worth of BTC after the halving. This selling pressure from miners could persist for four to six months, leading to a potential sideways movement in Bitcoin’s price during that period.
Historical Patterns and Price Movements
Thielen emphasized the historical pattern of Bitcoin prices remaining range-bound between $9,000 and $11,500 in the five months following the 2020 halving. This suggests a possible similar scenario post the upcoming halving event.
Halving to Negatively Impact Altcoins as Well
The halving, expected to occur around April 20, is anticipated to trigger a supply/demand imbalance as miners typically accumulate BTC leading up to the event. This accumulation often results in a subsequent rally in Bitcoin prices. However, altcoins may bear the brunt of the situation.
Altcoin Market Concerns
Thielen expressed concern for altcoins, noting that many have experienced significant declines in recent weeks and remain far from their peak levels reached in 2021. While there are predictions of a potential altcoin rally correlated with the halving, historical evidence suggests that such rallies typically commence almost six months later.
Potential Supply Increase and Market Impact
If miners adopt a strategy of gradually liquidating their inventories post-halving, it could lead to a maximum of $104 million worth of BTC being sold daily, potentially reversing the supply/demand imbalance that fueled the BTC rally before the halving.
Bitcoin Halving Impact on Markets
Crypto speculators are eagerly anticipating the upcoming Bitcoin halving, expected to occur around April 20. Doubts have arisen regarding whether the halving will have the same impact this time around.
Expert Views and Market Predictions
Billionaire Arthur Hayes has expressed a cautious view regarding the upcoming Bitcoin halving and its effects on the price of the asset. While many anticipate a significant rally for Bitcoin following the halving event, Hayes believes that the price action before and after the event could actually be negative. Coinbase has also warned about potential challenges for upward momentum as traders await a price surge ahead of Bitcoin halving.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
