Bitcoin Miners Could Liquidate $5 Billion After Halving Event: 10X Research Analysis

Bitcoin miners are gearing up to liquidate $5 billion worth of Bitcoin after the upcoming BTC halving event, according to a recent report by 10X Research. The head of research, Markus Thielen, predicts that this massive sell-off could push the crypto market into a “six-month summer lull.”

Thielen explains that Bitcoin miners have been stockpiling the leading cryptocurrency in anticipation of the halving event, where the supply of new Bitcoins is cut in half. After the halving, these miners are expected to gradually sell off their inventories to prevent a sudden drop in revenue. Marathon, the largest Bitcoin miner globally, is likely to lead the way in this selling strategy.

The influx of additional supply into the market could result in up to $104 million worth of BTC being sold off daily after the halving event. This could reverse the supply/demand imbalance that fueled the pre-halving rally in Bitcoin’s price, potentially causing the cryptocurrency to trade sideways for several months.

While some analysts predict an altcoin rally following the BTC halving, Thielen warns that historical evidence suggests that such a rally typically begins almost six months later. Altcoins may bear the brunt of the potential BTC selloff, with the altcoin market already experiencing a drop of over 10% last week.

Despite the uncertainty surrounding the post-halving market dynamics, the Bitcoin price has surged by 50.6% so far this year, reaching $66,529 as of the latest data. Traders are closely monitoring the situation as they anticipate the impact of the upcoming halving event on the broader crypto market.

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