Miners Could Offload $5 Billion in Bitcoin Following Halving, Warns 10x Research
A notable outflow of Bitcoin from miners could be on the horizon in the months following the upcoming halving event.
In a recent note , Markus Thielen, the head of research at 10x Research, estimated that Bitcoin miners have the potential to liquidate approximately $5 billion worth of BTC after the halving.
Thielen also highlighted that this selling pressure from miners could persist for four to six months, leading to a potential sideways movement in Bitcoin’s price during that period, similar to what has been observed in past halving cycles.
He emphasized the historical pattern of Bitcoin prices remaining range-bound between $9,000 and $11,500 in the five months following the 2020 halving.
#Bitcoin Might Trade Sideways for 6 months As Miners Could Sell $5bn of BTC -> Here is why: https://t.co/gLRgs8yyGg pic.twitter.com/zBLdV95MAl
— 10x Research (@10x_Research) April 13, 2024
The halving, expected to occur around April 20, is anticipated to trigger a supply/demand imbalance as miners typically accumulate BTC leading up to the event.
This accumulation often results in a subsequent rally in Bitcoin prices.
In 2024, Bitcoin experienced a surge of 74% and reached an all-time high of $73,734 on March 14 before undergoing a correction to below $63,000 in mid-April.
Thielen also expressed concern for altcoins, suggesting that they may bear the brunt of the situation.
Many altcoins have experienced significant declines in recent weeks and remain far from their peak levels reached in 2021.
While there are predictions of a potential altcoin rally correlated with the halving, historical evidence suggests that such rallies typically commence almost six months later.
The analyst further speculated that Marathon, the
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