Is the BTC Price Under Threat as Bitcoin Miners Consider a $5 Billion Sell-off?
Bitcoin miners are expected to sell a significant amount of Bitcoin following the halving event, which could lead to a decrease in prices. This sell-off is a result of miners earning less Bitcoin after the halving takes place. However, this could also have a negative impact on other cryptocurrencies, known as altcoins.
According to analysts at 10x Research, there is a concern that Bitcoin miners could release up to $5 billion worth of BTC into the market in the months following the halving. This influx of supply could create increased selling pressure and market volatility.
Markus Thielen, the head of research at 10x Research, predicts that there could be a prolonged period of sideways movement in Bitcoin prices for four to six months after the halving. He believes that miners will sell a staggering $5 billion worth of BTC during this time.
There are parallels being drawn to the 2020 halving, where Bitcoin prices remained relatively stable between $9,000 and $11,500 for five months. As the anticipation builds for this year’s halving, market observers are preparing for a potential “summer lull” in the market, with significant upward momentum not expected until around October.
Before the halving, miners typically accumulate BTC, which helps to increase Bitcoin prices. However, once the halving occurs, miners may begin selling their holdings to offset revenue losses. Marathon, the largest Bitcoin miner in North America, is expected to adopt this strategy by gradually selling off their inventory to remain profitable.
Thielen predicts that Marathon’s daily BTC output could decrease from 28-30 BTC to 14-15 BTC after the halving. If other miners follow a similar approach, it could result in a significant daily increase in BTC supply, potentially disrupting the supply-demand dynamics that contributed to the pre-halving price surge.
The potential sell-off by miners not only affects Bitcoin but also has implications for altcoins. Altcoin prices have already experienced notable declines in recent weeks and are expected to face further turbulence following the halving.
While some anticipate an altcoin rally coinciding with the halving, historical patterns suggest that any significant rally may be delayed by several months.
Whether one is bullish or bearish on Bitcoin’s post-halving trajectory, the market is eagerly awaiting to see where the price will head next.