Digital asset research firm 10x Research stated in a research report released last Friday (the 12th) that the cryptocurrency market may face significant challenges during a six-month “summer” period as Bitcoin miners prepare to sell off their large BTC inventories. The accumulated inventory over the past few months may disrupt market dynamics.
10x Research stated that this is a typical situation before the Bitcoin halving, where miners hoard Bitcoin, resulting in a supply-demand imbalance and a subsequent price rebound. In this scenario, altcoins may be particularly affected.
According to calculations by 10x Research, miners may liquidate $5 billion worth of Bitcoin after the halving. Markus Thielen, the founder of 10x Research, stated that the adverse effects of these sell-offs may last for four to six months, explaining why Bitcoin may experience sideways fluctuations in the coming months, similar to what happened after previous halvings.
According to data from CoinMarketCap, at the time of this article’s publication, there is less than 5 days remaining until the Bitcoin halving.
Related reports: “21Shares Report: What’s Different About the Fourth Bitcoin Halving?” “Marathon CEO: Bitcoin Halving Rebound Partially Reflected” “Cantor Fitzgerald Report: 11 Listed Mining Companies May Struggle to Profit from Mining Business After Bitcoin Halving”
