Bitcoin miners will experience a huge revenue crisis due to Bitcoin halving and are likely to sell their BTC holdings. There are likely to be $10 billion in losses.
With only four days remaining until Bitcoin halving, Bitcoin miners have resumed their operations.
Recent events indicate that a Bitcoin miner wallet that had been inactive for nearly 14 years has become active.
Reports indicate that Bitcoin miners may prepare for a sell-off after the halving event.
Bitcoin Miner Moves 50 BTC to Coinbase
An unexpected development has occurred; a miner wallet that had been dormant for nearly 14 years has reappeared.
Recently, the wallet acquired 50 BTC through mining on April 23, 2010, and deposited its entire holdings to the cryptocurrency exchange Coinbase, equivalent to approximately $3.28 million.
Given that the miner retained the Bitcoins he obtained more than a decade ago, this disclosure has piqued the interest of the cryptocurrency community.
The wallet address, 15sxzZ4QSaoiMo5KYH9ab4xQj34yeJmKgb, has garnered interest from analysts and enthusiasts speculating on the causes of this abrupt transfer of funds.
Markus Thielen, CEO of 10x Research, stated in a research report from last week that Bitcoin miners are preparing to liquidate $5 billion worth of their Bitcoin holdings following the impending halving event.
After the Bitcoin halving event, miners will probably begin selling fractions of their holdings due to the heightened financial demands and mining difficulty.
10x Research forecasts that following Bitcoin halving in April, a phase of six months characterized by a lack of movement exists.
This phase could pose significant challenges for the crypto market as “Bitcoin miners gear up to liquidate substantial portions of their BTC reserves.”
According to Thielen, the accumulation of inventories during the optimistic market sentiment of recent months disrupts market dynamics.
Mining operations have historically accumulated BTC holdings in anticipation of the April 20 Bitcoin halving event, which has caused a supply-demand imbalance and consequent price appreciation.
Bitcoin Halving: Sell The News Event?
Numerous market analysts believe the forthcoming Bitcoin halving event may result in a sell-the-news mentality, particularly in light of the Bitcoin miners’ unloading.
Moreover, recent research findings indicate that the Bitcoin mining sector may incur losses of $10 billion after the halving incident.
The forthcoming Bitcoin halving will reduce miner rewards from the current 6.25 BTC to 3.125 BTC.
On the other hand, Bitcoin miners will incur substantial increases in mining expenses.
Observing whether the anticipated Bitcoin price increase offsets the mining losses will be intriguing.
