Bitcoin miners expect Bitcoin price to exceed $12,000 after halving
Miners have sold less Bitcoin (BTC) in the last seven days as the long-awaited reduction in the block reward approaches. This means that the miners expect the price of Bitcoin to increase substantially over time after the halving occurs.
Bitcoin halving, which is scheduled for Tuesday, occurs approximately every four years. When activated, it decreases the amount of Bitcoin with which miners are rewarded for their troubles. Since the new Bitcoins generated are introduced to the market by the miners who sell them, halving is expected to decrease the rate of introduction of these new Bitcoins.
Given the deflationary nature of Bitcoin, any event affecting its supply will have a significant impact on the price of the asset. In the medium to long term, the data show that miners are confident that halving will cause the price to rise substantially.
Miners‘ hoarding of Bitcoin is typically a bad sign
Last week, according to
- The News Spy
- Bitcoin Code
- Bitcoin Era
- Bitcoin Trader
- Immediate Edge
- Bitcoin Circuit
- Bitcoin Billionaire
- Bitcoin Revolution
- Bitcoin Evolution
- Bitcoin Profit
the miners had about 1067 Bitcoins. Apparently, the miners‘ hoarding of Bitcoin seems positive, but it is not.
Miners hoard Bitcoin ahead of halving
Bitcoin miners, especially the large scale centers, conduct highly sophisticated trading with professional traders and market analysts. They often evaluate liquidity and general market sentiment. If the miners feel that the liquidity in the crypt-currency market is low, they refrain from selling.
When there is not enough demand to buy in the market, selling a significant amount of Bitcoin can lead to an abrupt price drop with a high slide. The term slippage is used to describe a movement in the price of an asset when a large buy or sell order is executed.
Typically, miners who hoard most of the Bitcoin they mine without selling it to cover costs are not optimistic. But ByteTree’s research paper noted that this time the miners can expect the next halving to raise the price of Bitcoin substantially. The company’s co-founder and president, Charlie Morris, wrote:
„We usually see this as a bearish thing because it involves a soft bid on the market. With the recent price increase, this has clearly not been the case, and therefore we can only assume that the miners also think that prices will rise after the halving.