A recent report has revealed that an increased volume of Bitcoin could be released after the upcoming halving, as Bitcoin traders may liquidate $5Billion.
Bitcoin Traders May Liquidate $5bn
According to a renowned crypto market analyst, a huge outflow of Bitcoin is expected to be offloaded after the next halving, which has been the case in previous years.
BTC traders could liquidate around $5bn in value following the halving, as Markus Thielen, head of research at 10x Research, analysed on April 13th.
He said: “The overhang from this selling could last four to six months, explaining why Bitcoin might go sideways for the next few months — as it has done following past halvings,”
Upon Thielen’s review, believes the same outcome is extremely likely and the current crypto market could be part of a huge challenge in the next six months.
BTC sat between $9,000 and $11,500 during the five months after halving in 2020, with the COVID 19 pandemic impacting this.
The 2024 halving is set to happen on April 20th, which means that the crypto markets may not see any progress based off recent years – with October being the next point in time for an upwards shift,
Thielen also revealed that miners are likely to build up a BTC portfolio, which will “lead to a supply/demand imbalance and a subsequent rally in Bitcoin prices.”
Signs of this have already began, as Bitcoin prices have risen by 74% to total at a record of $73.734 (March 14th) and eventually dropping below $63,000 in April.
According to Thielen, altcoins could face a huge amount of repercussions from this, as several have dropped by significant amounts in the last week.
He said: “Even if there is a correlation between the halving and an altcoin rally, as some predict, historical evidence shows that the rally typically begins almost six months later.”
