Bitcoin Could See Massive Supply Hike as Miners Plan to Dump $5B In BTC
According to an analyst, Bitcoin miners could sell up to $5 billion worth of BTC following the halving, which could last for four to six months. This could cause a large outflow from miners. There could be a large outflow of BTC currently at $66,037 from miners in the months following the halving as in previous cycles.
Markus Thielen, the head of research at 10x Research, calculated this amount in an analyst note on April 13. He also suggested that crypto markets could face a significant challenge in a six-month “summer” lull due to the overhang from selling. He added that Bitcoin prices may remain range-bound for the next few months, as it happened following past halvings.
Bitcoin Set for Massive Dip
Historically, miners tend to stock up on BTC leading up to the halving, causing a supply/demand imbalance that results in a subsequent rally in Bitcoin prices. This has already occurred in 2021, with BTC prices surging 74% to reach an all-time high of $73,734 on March 14 before correcting to below $63,000 in mid-April.
Furthermore, Thielen also suggested that altcoins could bear the brunt of this situation, as many falling back heavily over the past week. He postulated that Marathon, the world’s largest miner, has built an inventory that will likely be gradually sold after the halving to prevent a revenue cliff from occurring.
According to sources, Marathon currently produces 28–30 BTC per day, this could result in 133 days of additional supply hitting the market plus the BTC it produces, which would be 14–15 BTC per day after the halving, he said. This could result in 133 days of additional supply hitting the market plus the BTC it produces, which would be 14-15 BTC per day after the halving.
Thielen concluded that if all miners have a similar strategy of selling inventory post-halving, it could result in a maximum of $104 million of BTC selling per day, thus reversing the supply/demand imbalance that caused BTC to rally pre-halving.
Marathon CEO Peter Thiel predicted that the firm’s break-even rate would be about $46,000 per BTC to remain profitable after the halving and that there is unlikely to be any significant price movements in the six months that follow the event.
