Bitcoin Miners Projected to Sell $5 Billion Worth of BTC, Causing Altcoin to Decline, Reports 10x Research
Title: Analysts Anticipate $5 Billion Bitcoin Sell-Off Following Halving, Causing Market Uncertainty
Summary: As Bitcoin’s halving event approaches, concerns are growing about a potential surge of BTC supply flooding the market. Analysts at 10x Research predict that Bitcoin miners could liquidate up to $5 billion worth of BTC in the months after the halving, leading to increased selling pressure and market uncertainty. This article explores the implications of this anticipated sell-off and its potential impact on altcoins.
In anticipation of Bitcoin’s upcoming halving, which is scheduled for April 20, there are mounting concerns about a possible flood of BTC supply hitting the market. Analysts at 10x Research suggest that Bitcoin miners may offload as much as $5 billion worth of BTC in the months following the halving. This significant sell-off could create a period of high selling pressure and market uncertainty.
According to Markus Thielen, head of research at 10x Research, this post-halving sell-off could continue for four to six months, resulting in an extended period of sideways movement for Bitcoin prices. Thielen believes that miners have the potential to liquidate up to $5 billion worth of BTC during this time.
Drawing parallels with the 2020 halving, Thielen suggests that a similar scenario could unfold in the cryptocurrency markets. After the 2020 halving, Bitcoin prices remained range-bound between $9,000 and $11,500 for five months. Therefore, it is possible that this year’s halving could lead to a “summer lull,” delaying any significant upward trajectory in Bitcoin prices until around October.
Leading up to the halving, miners typically accumulate BTC, creating a supply-demand imbalance that drives up Bitcoin prices. However, once the halving occurs, miners may start selling off their inventory to avoid a drop in revenue. Marathon, the largest Bitcoin miner in North America, is expected to adopt this strategy by gradually offloading its inventory to maintain profitability.
Thielen estimates that Marathon’s daily BTC production, which is currently around 28-30 BTC, could decrease to 14-15 BTC after the halving. If other miners follow a similar approach, it could result in a substantial daily influx of BTC into the market, potentially reversing the supply-demand dynamics that fueled the pre-halving rally.
The potential sell-off and its impact extend beyond Bitcoin, affecting altcoins as well. Altcoin prices have already experienced significant declines in recent weeks, and Thielen’s analysis suggests that this trend may continue after the halving. Despite some predictions of an altcoin rally coinciding with the halving, historical evidence indicates that such a rally may be delayed by several months.