There could be a large outflow of Bitcoin from miners in the months following a halving, as in previous cycles, according to a market analyst.
Bitcoin miners could potentially liquidate $5 billion worth of BTC after halving, according to calculations by 10x Research head Markus Thielen in an April 13 analyst note.
"The overhang resulting from this sell-off could last four to six months, which explains why Bitcoin could plummet over the next few months - as it has after previous halvings," - he added.
Thielen said the same thing could happen again, with cryptocurrency markets potentially facing a "significant challenge during the six-month 'summer' lull."
Bitcoin prices have held in the $9,000 to $11,500 range in the five months following halving in 2020.
This year, halving will occur around April 20, just six days from now, so markets may not see a significant upward trajectory until around October, if history rhymes.
In addition, miners tend to stockpile BTC, "which leads to an imbalance in supply and demand, and consequently to an increase in bitcoin prices," leading to halving, he said.
This has already occurred , with BTC prices rising 74% in 2024, reaching an all-time high of $73,734 on March 14, before falling below $63,000 in mid-April.
Thielen also believes that altcoins in particular may bear the brunt of this situation. Many of them have been falling sharply over the past week, and many remain far from their 2021 peaks.
