10x Research, a digital asset research for traders and institutions, has predicted a potential sell-off of approximately $5 billion worth of Bitcoin by miners in the aftermath of the highly anticipated halving event. The warning comes amidst heightened speculation and anticipation surrounding the impact of the halving on the cryptocurrency market.
The Bitcoin halving, an event programmed into the cryptocurrency’s protocol that occurs approximately every four years, involves a reduction in the block rewards miners receive for validating transactions. As the supply of new Bitcoins entering circulation diminishes, miners’ profitability is expected to be significantly affected, potentially prompting them to sell a portion of their holdings to cover operational expenses.
10x Research’s analysis suggests that the impending reduction in mining rewards could lead miners to liquidate a substantial amount of Bitcoin, estimated to be in the range of $5 billion. This influx of selling pressure has the potential to exert downward pressure on Bitcoin’s price, impacting market sentiment and triggering volatility in the cryptocurrency market.
The warning from 10x Research underscores the importance of closely monitoring market dynamics in the wake of the halving event and its potential implications for Bitcoin’s price trajectory. While the halving is often viewed as a bullish catalyst for Bitcoin due to its role in reducing inflation and increasing scarcity, the short-term effects on miner behaviour and market dynamics cannot be overlooked.
