According to market analyst Markus Thielen from 10x Research, approximately $5 billion in Bitcoin could be sold by miners following the upcoming halving event on April 20th.
#Bitcoin Might Trade Sideways for 6 months As Miners Could Sell $5bn of BTC -> Here is why: — 10x Research (@10x_Research) April 13, 2024
Based on historical patterns, this anticipated Bitcoin sale could lead to an extended duration of consistent pricing around current levels. This is akin to the five-month price range between $9,000 and $11,500 seen post-2020 halving.
Thielen’s examination indicates that the crypto markets could encounter a “notable downturn” during the next six months due to miners selling off their previously mined Bitcoins, resulting in increased supply.
In the Bitcoin world, it’s common for miners to hoard large quantities of the cryptocurrency prior to a halving event. This accumulation can skew the market equilibrium, leading to increased demand and subsequently, price hikes. For instance, Bitcoin experienced a remarkable surge of 74% in 2024, peaking at an unprecedented high of $73,734 on March 14th. However, prices dipped back to around $63,000 by mid-April after this correction.
Thielen’s calculations suggest that Marathon, as the biggest Bitcoin miner globally, may add around 133 more days’ Bitcoin to the market following the halving event, aside from their regular output of approximately 14-15 Bitcoins per day.
If other miners adopt a comparable approach, Thielen predicts that up to $104 million worth of Bitcoin could be sold daily. This potential sale volume might counteract the supply shortage that previously contributed to Bitcoin’s price surge before the halving event.
Thielen’s assessment mainly explores how Bitcoin might be affected, but he also points out that several altcoins have been hit hard and have seen substantial drops since reaching their highest points in 2021.
Also read: Bitcoin Halving Set to Cut Miners’ Revenue by $10 Billion
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2024-04-15 09:56