Mining Firms Might Dispose of $5B Worth of Bitcoin Post-Halving 

An analyst noted that Bitcoin miner sales could take four to six months following the halving, worth $5B.

A bitcoin analyst claims that a larger Bitcoin outflow from miners might be witnessed in the coming months after the halving as in earlier cycles. 

Evaluations by Markus Thielen, head of research at 10x Research, showed that Bitcoin miners might liquidate BTC worth $5B. This selling overhang might occur again, with crypto markets possibly facing a considerable problem in a six-month ‘summer’ silence.’

Market to Avoid Price Volatility Post-Halving

In the five months that came after the 2020 halving, the prices of Bitcoin continued to be between $9,000 and $11,500. 

This year’s halving will happen around April 20. As such, markets might not experience a considerable skyward trajectory until around October, in case history rhymes. 

Miners are more likely to stock up on BTC, resulting in a demand/supply disparity and a subsequent rally in Bitcoin prices that results in halving. 

Already, this has happened with Bitcoin prices rising 74% early this year to an all-time high of $73,734 on March 14 before correcting to less than $63000 mid this month. 

Further, Thielen believes that altcoins could be affected by this situation. Over the past week, most have been falling back profoundly, and several are still far from reaching their 2021 peak. 

Some envisage that despite a connection between an altcoin rally and halving, historical proof reveals that the rally started nearly six months later. 

Thielen hypothesized that Marathon, the globe’s most significant Bitcoin miner, has created an inventory ‘that might be progressively sold following the halving to avert the occurrence of a revenue cliff.’ 

Currently, Marathon generates 28 to 30 Bitcoins daily, which may lead to 133 days of extra supply hitting the market, and the amount of Bitcoin they generate would be 14 to 15 Bitcoins daily following the halving. According to Thielen, other miners might embrace a similar approach to liquidate some of their inventory. 

Calm Price Movement Likely Post-Halving

The researcher deduced that if all miners possess the same approach to selling inventory after halving, ‘this could lead to a maximum of $104M of Bitcoin selling daily. This would reverse the demand/supply imbalance that evoked Bitcoin’s rallying before halving. 

Marathon’s chief executive officer, Peter Thiel, claimed that the company’s break-even rate would be nearly $46,000 for every Bitcoin to maintain profitability following the halving. He envisaged the impossibility of any considerable price shifts six months after the event.