After the Bitcoin halving, miners will experience severe cash pressure and are probably going to sell their BTC holdings. Losses of $10 billion are anticipated.
Source: pexels.com
HISTORICAL POINTS
- Coinbase receives $3.28 million worth of bitcoins from a Satoshi-era whale.
- Bitcoin miners may start a sell-off in response to the revenue decline following the Bitcoin halving.
- Following the sale of half of Bitcoin, the mining business is predicted to suffer a $10 billion loss.
The four-day Bitcoin halving is almost over, and miners are back in action. The most recent advancement is the activation of a Bitcoin miner wallet that has been idle for almost 14 years. According to reports, Bitcoin miners may be preparing for a sell-off following the halving event.
A Bitcoin miner sends 50 BTC to Coinbase.
After more than 14 years of inactivity, a long-dormant miner wallet has unexpectedly emerged. The wallet just transferred all of its holdings, or about $3.28 million, to the cryptocurrency exchange Coinbase. On April 23, 2010, the wallet got 50 BTC from mining.
The mining community has become interested in this discovery since the miners have been holding onto Bitcoin for more than ten years. The wallet address, 15sxzZ4QSaoiMo5KYH9ab4xQj34yeJmKgb, has drawn interest as experts and fans make assumptions about the reasons for this abrupt transfer of money.
A miner wallet woke up after being dormant for nearly 14 years and deposited 50 $BTC($3.28M) to #Coinbase 5 mins ago.
— Lookonchain (@lookonchain) April 15, 2024
The miner earned 50 $BTC from mining on Apr 23, 2010, and has been holding it to this day.
Address:
15sxzZ4QSaoiMo5KYH9ab4xQj34yeJmKgb pic.twitter.com/DRw9U5Xy8N
The CEO of 10x Research, Markus Thielen, said last week in a research study that Bitcoin miners are preparing to liquidate $5 billion worth of their assets following the impending halving event.
Miners will probably start selling some of their holdings after the Bitcoin halving because of the increased difficulty and cost of mining.
Projections from 10x Research indicate that following the April Bitcoin halving, there will likely be a six-month period of stagnation. The cryptocurrency market may face serious difficulties during this time as "Bitcoin miners gear up to liquidate substantial portions of their BTC reserves."
According to Thielen, the market dynamics are disturbed by the build-up of inventories during the recent positive market sentiment. Miners typically accumulate their Bitcoin holdings in the run-up to the anticipated April 20 Bitcoin halving event. This creates an imbalance between supply and demand, which pushes up Bitcoin prices.
Halving Bitcoin: Sell The News Story?
Because of the miners' selling, several market observers think that the impending Bitcoin halving event may be a sell-the-news story. Moreover, according to recent study reports, the Bitcoin mining business may suffer losses of up to $10 billion after the halving event.
The miner incentives will drop from 6.25 BTC at now to 3.125 BTC after the impending Bitcoin halving. However, Bitcoin miners will also see a large increase in mining costs. It will be fascinating to observe if the anticipated increase in Bitcoin price offsets the losses incurred by mining.
