Bittime - Market analysts predict a large outflow of Bitcoin (BTC) from miners following the halving event, similar to patterns seen in previous cycles.
$5 Billion Bitcoin Sale by Miners Post Halving?
According to calculations by the head of research at 10x Research, Markus Thielen, in his latest analyst note, Bitcoin miners could potentially liquidate $5 billion worth of BTC after the halving event.
"The impact of this sell-off could last for four to six months, explaining why Bitcoin may move sideways over the next few months – as it did after previous halvings," he added.
Check Crypto Prices Today:
Thielen predicted something similar could happen again, with the crypto market potentially facing “significant challenges in the six-month sluggish ‘summer’ period.”
Bitcoin prices moved in a limited range between $9,000 and $11,500 in the five months following the halving in 2020.
Halving Impact on Price Movements
Referring to historical patterns, significant Bitcoin price movements may not occur until around October of this year. The halving is expected to occur around April 20, just six days away.
"Additionally, miners tended to hoard BTC, 'creating an imbalance between supply and demand that then fueled Bitcoin price increases,'" before the halving event, Thielen explained.
This is already happening, with BTC prices surging 74% in 2024, reaching an all-time high of $73,734 on March 14 before correcting to below $63,000 in mid-April.
Impact on Altcoins
Thielen also thinks that altcoins, in particular, could be the ones most affected by this situation. Many of them have experienced significant price drops over the past week and are still far from their 2021 peaks.
Also Read How To Buy Crypto:
Thielen estimates that Marathon, the world's largest Bitcoin mining company, has built up inventory "that will likely be sold off gradually after the halving to prevent a drastic drop in revenue."
With Marathon's (current) production of 28-30 BTC per day, this could result in an additional 133 days' supply entering the market plus the BTC they produce, which is about 14-15 BTC per day after the halving.
The researcher concluded that if all miners had a similar strategy for selling supply post-halving, "this could result in maximum BTC sales of $104 million per day – reversing the supply/demand imbalance that led to BTC's pre-halving rally."
Marathon CEO Predictions
Last week, Marathon CEO Peter Thiel said that the company's breakeven point would be around $46,000 per BTC to remain profitable after the halving. He predicts that there will likely be no significant price movements in the six months following the event.
How to Buy Bitcoin (BTC) from Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime .
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
What Will Happen to the Bitcoin Network After the Halving?
Bitcoin Halving: Will More Institutional Investors Join In?
Bitcoin Halving 2024: Could Altcoin Prices Skyrocket?
Bitcoin Halving in 2024: Market Player Analysis
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
Comments
0 comments
Please sign in to leave a comment.