Finance

Bitcoin Miners May Sell $5 Billion Worth of Bitcoin Post-Halving, Analyst Predicts

Bitcoin mining operations could be preparing to sell off approximately $5 billion worth of Bitcoin following the upcoming halving event, according to Marcus Tilen, an analyst at 10x Research.

The cryptocurrency market may face significant challenges during what Tilen refers to as the "six-month summer lull," a period expected post-halving. During this phase, miners are likely to liquidate a substantial portion of their holdings. This potential sell-off can have long-lasting impacts on the market dynamics of Bitcoin.

"The consequences of these sales could last from four to six months, which explains why Bitcoin might experience a sideways trend in the following months—as has been the case after previous halvings," stated Tilen.

This anticipated action by Bitcoin miners stems from the halving event—a process that reduces the reward for mining new blocks by half, thereby diminishing the rate at which new bitcoins are generated. This event, which occurs approximately every four years, aims to control inflation and prolong the mining lifecycle of Bitcoin.

The analysis by Tilen sheds light on the strategic decisions miners are forced to make post-halving. With reduced rewards, miners might find it financially necessary to sell a significant portion of their stored bitcoins to maintain operational stability and manage profitability.

As the Bitcoin community anticipates the halving, the market remains watchful of the potential ripple effects that such massive sell-offs could have. Past halvings have been followed by periods of price stability and even increases, but the unique economic pressures and market dynamics of each cycle can lead to different outcomes.

For investors and market spectators, understanding the implications of miners' actions post-halving is crucial for making informed decisions. As the date of the halving approaches, all eyes will be on the actions of these key market players, whose decisions could dictate the short-term trajectory of Bitcoin's value.

ECB tries to save EU economy - central bank will be flexible in reinvesting PEPP program

The pandemic has left persistent vulnerabilities in the eurozone economy that contribute to the uneven normalization of our monetary policy among different countries, the ECB said. The ECB has instructed Eurosystem committees and ECB services to accelerate the development of a new mechanism to combat fragmentation. Why it matters. Rising

Price for oil price cap yet to be determined, head of European Commission

"The EU is ready in principle to go to the oil price cap," von der Leyen added. Earlier, the head of the U.S. Treasury Yellen said that the U.S. is not against the purchase of oil by India above the price cap. The WSJ also reported citing sources

U.S. officials forced to roll back plan to limit Russian oil prices - Bloomberg

India and China - Russia's most important trading partners - will not participate, Bloomberg sources said. The price cap plan is still alive after all. However, the price cap will be higher than previously thought. Earlier, U.S. Treasury Secretary Yellen said the price ceiling could be in the range

Read next