Bitcoin Halving Event Sparks Concerns of $5 Billion Sell-Off by Miners
As Bitcoin’s highly anticipated halving event approaches, concerns are growing over a possible flood of BTC hitting the market. Analysts at 10x Research are warning that Bitcoin miners could potentially liquidate up to $5 billion worth of BTC in the months following the halving, leading to increased selling pressure and market uncertainty.
Markus Thielen, head of research at 10x Research, predicts that the post-halving sell-off could last for four to six months, resulting in a prolonged period of sideways movement for Bitcoin prices. Drawing parallels with the 2020 halving, Thielen suggests that Bitcoin prices could remain range-bound between $9,000 and $11,500 for an extended period.
With the halving scheduled for April 20, Thielen warns that markets may experience a “summer lull,” delaying any significant upward trajectory until around October. Leading up to the halving, miners typically accumulate BTC, driving prices up. However, once the halving occurs, miners may start selling off their inventory to maintain profitability.
Marathon, North America’s largest Bitcoin miner, is expected to adopt this strategy, gradually offloading its inventory post-halving. Thielen estimates that Marathon’s daily BTC production could halve from 28-30 BTC to 14-15 BTC, potentially flooding the market with excess supply.
The impact of this potential sell-off extends beyond Bitcoin to the altcoin market. Altcoin prices have already seen significant declines in recent weeks, and Thielen’s analysis suggests that this trend may continue post-halving. Despite some predictions of an altcoin rally correlated with the halving, historical evidence indicates that any such rally may be delayed by several months.
As the cryptocurrency market braces for the upcoming halving event, investors and traders are advised to exercise caution and closely monitor market developments to navigate the potential volatility ahead.
