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Report: Bitcoin miners selling part of their reserves before halving, effectively dispersing market selling pressure

Report: Bitcoin miners selling part of their reserves before halving, effectively dispersing market selling pressure

Bitget2024/04/23 06:22

PANews reported on April 23, according to Cointelegraph, Bitfinex's latest report pointed out that Bitcoin miners have sold part of their reserves in advance before the halving. This move effectively dispersed market selling pressure and prevented a significant price drop. Meanwhile, the newly launched Bitcoin spot ETF demand in the United States also helped stabilize market sentiment. The report shows that miners significantly reduced the amount of Bitcoins sent to exchanges in March, indicating they had planned their sell-off ahead of time. Although this may impact the market short-term, it will help miners adapt to new conditions after halving in the long run.

Since halving, Bitcoin prices haven't dropped significantly but instead increased by about 4.5%, continuing an upward trend. This is thanks to adjustments made by miner strategies and positive impacts from ETF demands on market sentiment. The "large-scale" fund flows from ETFs significantly affect market pricing differently than conventional supply-demand frameworks do. Bitfinex predicts that after miner income decreases, price increases and mining business expansion will compensate for reduced rewards; any negative impact on the market will be temporary. At present, the number of Bitcoins purchased by ETF issuers has exceeded new coin creation volume; it is expected that there will be a tightening of supply in the marketplace.

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