Potential Bitcoin Sell-Off by Miners Post-Halving Could Impact Prices
After the upcoming Bitcoin halving, scheduled for April 20th, analysts from 10x Research predict a significant sell-off by miners, potentially amounting to around $5 billion in BTC. This forecast is based on historical data and the economic impacts of reduced mining rewards.
What does this mean for Bitcoin’s price?
A sell-off of this magnitude is unlikely to have a positive effect on Bitcoin prices. According to Markus Thielen of 10x Research, the market could experience a prolonged period of lateral movement, lasting from four to six months. This pattern is not new; following the 2020 halving, Bitcoin’s price hovered between $9,000 and $11,500 for five months.
Implications for the broader crypto market:
While Bitcoin faces these potential challenges, Thielen expresses greater concern for altcoins, which are still far from their peak values reached during the 2021 bull market.
The role of mining companies:
Companies like Marathon Digital are planning to gradually sell off their Bitcoin holdings to avoid a steep drop in transaction volumes post-halving. Currently, Marathon produces between 28 to 30 Bitcoins daily, but this rate could halve to 14-15 Bitcoins daily post-event. Thielen suggests that other miners might adopt similar strategies, adding to the selling pressure on Bitcoin.
Looking forward:
Thielen believes that a bullish market could resume in late 2024, once the dust has settled from the miners’ sell-off. Until then, the market could face significant downward pressure from these large-scale sales.
