Cryptocurrency research firm 10x Research analyst Markus Thielen issued a warning in a report yesterday about the post-halving trend, predicting that miners may liquidate $5 billion worth of BTC after the halving, causing Bitcoin to consolidate in the coming months.
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Bitcoin is expected to undergo its fourth halving event around May 20, reducing miners’ block rewards from 6.25 BTC to 3.125 BTC.
Opinions on the post-halving trend of Bitcoin vary in the market. Historically, in previous halving cycles, halvings often occurred before Bitcoin entered a bull market, and after the halving, there was often a significant correction followed by a significant surge, breaking historical highs several months later. However, Bitcoin has already surpassed historical highs in March before this halving, which is the first time in previous halving cycles.
Some analysts believe that this may indicate that the price of Bitcoin has already absorbed the effects of the halving and may experience a typical “sell the news” decline after the halving. JPMorgan analysts predicted last month that due to the reduced mining rewards and increased production costs for miners, Bitcoin may fall to around $42,000 after the halving.
Further reading:
JPMorgan: Bitcoin may plummet to $42,000 after the halving, current BTC still in oversold condition, decline not over
Miners may sell $5 billion worth of BTC after halving
Cryptocurrency research firm 10x Research analyst Markus Thielen also issued a warning about the post-halving trend. In a report yesterday (12), he wrote that Bitcoin miners may sell $5 billion worth of Bitcoin after the halving to cope with the rising mining difficulty and financial needs.
This could pose significant challenges to the cryptocurrency market during a six-month summer lull, especially for altcoins. The report states:
The report also points out that this is a typical scenario before halving, where miners usually hoard BTC before halving, leading to an imbalance in supply and demand, and subsequently an increase in Bitcoin prices.
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