{"id":12526,"date":"2024-04-15T13:14:58","date_gmt":"2024-04-15T13:14:58","guid":{"rendered":"https:\/\/news.ng\/?p=12526"},"modified":"2024-04-15T13:15:01","modified_gmt":"2024-04-15T13:15:01","slug":"market-experts-warn-of-massive-bitcoin-liquidation-following-halving","status":"publish","type":"post","link":"https:\/\/news.ng\/market-experts-warn-of-massive-bitcoin-liquidation-following-halving\/","title":{"rendered":"Market experts warn of massive Bitcoin liquidation following halving"},"content":{"rendered":"\n

After scrutinizing the market dynamics, analysts forecast a substantial liquidation of Bitcoin by miners, estimating that a staggering $5 billion worth of BTC<\/a> could flood the market post-halving, a pattern observed in historical cycles.<\/p>\n\n\n\n

Markus Thielen, the head of research at 10x Research, articulated his projections indicating the potential liquidation of $5 billion in BTC<\/a> by miners following the halving event.<\/p>\n\n\n\n

Thielen elaborated, suggesting that the aftermath of this sizable sell-off could linger for a considerable period, spanning four to six months. This projection rationalizes the anticipated sideways movement in Bitcoin’s price in the coming months, a trend observed after previous halving events.<\/p>\n\n\n\n

Drawing parallels to past occurrences, Thielen stated the likelihood of history repeating itself, envisaging crypto markets grappling with what he terms a “six-month summer lull.”<\/p>\n\n\n\n

Reflecting on the aftermath of the 2020 halving, Bitcoin prices remained range-bound between $9,000 and $11,500 for five months. Extrapolating from this, the halving slated around April 20 this year could delay any substantial upward momentum until around October.<\/p>\n\n\n\n

Thielen further took into consideration miners’ behaviour, highlighting their inclination to accumulate BTC in anticipation of the halving. This accumulation trend typically triggers a supply-demand imbalance, propelling Bitcoin prices upward.\u00a0<\/p>\n\n\n\n

As evidence, Bitcoin<\/a> surged by 74% in 2024, reaching a pinnacle of $73,734 on March 14 before a subsequent dip below $63,000 in mid-April.<\/p>\n\n\n\n

The analyst also shed light on the ripple effect on altcoins, elucidating their regression from peak values in 2021. Despite conjecture surrounding a potential altcoin rally post-halving, Thielen referenced historical data, indicating that such rallies typically manifest approximately six months later.<\/p>\n\n\n\n

Zooming into specific mining operations, Thielen spotlighted Marathon as the world’s largest Bitcoin miner, hinting at their accumulated inventory likely to be methodically offloaded post-halving to avert revenue shocks. Marathon’s current daily production of 28\u201330 BTC could translate to an additional 133 days of supply in the market post-halving, with ongoing production hovering around 14\u201315 BTC per day.<\/p>\n\n\n\n

In a hypothetical scenario where all miners adopt a similar strategy, Thielen envisaged a potential daily sell-off of up to $104 million worth of Bitcoin post-halving, a move that could potentially rebalance the supply-demand equation driving the recent price surge.<\/p>\n\n\n\n

As the countdown to the halving progresses, slated to slash miners’ daily Bitcoin rewards to 450 from the current 900, the industry faces revenue losses estimated at approximately $10 billion annually.<\/p>\n\n\n\n

In preparation for this event, entities like Marathon Digital Holdings and CleanSpark have ramped up their efforts, investing in upgraded equipment and strategic acquisitions to mitigate revenue declines.<\/p>\n\n\n\n

Matthew Kimmell, a digital asset analyst at CoinShares, emphasized the urgency among miners to maximize revenue before the impending halving-induced revenue reduction.<\/p>\n\n\n\n

Marathon CEO Peter Thiel cited the company’s break-even threshold post-halving, pegging it at around $46,000 per BTC and anticipating minimal price fluctuations in the six months following the event.<\/p>\n\n\n\n

Echoing sentiments of optimism, Alvin Kan, COO at Bitget Wallet, anticipates a bullish cycle following the halving, attributing ETFs as a significant catalyst in shaping market dynamics. Since the SEC’s nod in January, spot Bitcoin ETFs have witnessed unprecedented growth, with cumulative net inflows surpassing $56.27 billion, buoying Bitcoin to its all-time high early in the bull market.<\/p>\n\n\n\n

Kan anticipates sustained positive momentum in ETF flows post-halving, buoyed by investors keen on leveraging Bitcoin’s historical price surge post-halving to their advantage.<\/p>\n","protected":false},"excerpt":{"rendered":"

After scrutinizing the market dynamics, analysts forecast a substantial liquidation of Bitcoin by miners, estimating that a staggering $5 billion worth of BTC could flood the market post-halving, a pattern observed in historical cycles.<\/p>\n","protected":false},"author":14,"featured_media":12527,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[149,1],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/posts\/12526"}],"collection":[{"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/comments?post=12526"}],"version-history":[{"count":1,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/posts\/12526\/revisions"}],"predecessor-version":[{"id":12528,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/posts\/12526\/revisions\/12528"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/media\/12527"}],"wp:attachment":[{"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/media?parent=12526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/categories?post=12526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.ng\/wp-json\/wp\/v2\/tags?post=12526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}