Key Points
- The Bitcoin halving event is expected to happen in approximately 70 days, and this anticipation has sparked a significant amount of activity in the crypto market.
- Bitcoin’s price has been hovering around the $43,000 mark, but market analysts anticipate a bullish trend soon.
- Investors are expected to increase their buying activity in the lead up to the halving event.
- Bitcoin miners have been selling off their holdings in preparation for the halving event, which will cut their rewards from 6.25 BTC to 3.125 BTC.
- The decrease in Bitcoin miner reserves is interpreted as a sign that miners are actively selling their tokens.
Anticipation for Bitcoin Halving Builds Up
Following the approval of the Bitcoin ETF last month, the entire crypto community is now eagerly waiting for the Bitcoin halving event 2024, which is just about 70 days away.
With the Bitcoin price currently fluctuating around $43,000, market analysts are predicting a bullish scenario to unfold shortly.
Analysts Predict Increased Buying Activity
Analysts are of the belief that both retail and institutional buying interest will increase as the scheduled halving on April 18 approaches.
Popular crypto investor Rekt Capital suggests that a ‘pre-halving’ rally could start as early as next week, potentially leading to a 63-day uptrend in Bitcoin’s price leading up to the halving.
Phases of Bitcoin Halving
The pre-halving rally is considered the second phase in a series of five phases associated with Bitcoin halving.
The first phase is a downside phase, which starts 70 days before the event and lasts for seven days, a phase that the market is currently in.
Investors “Buying the Hype”
After the initial correction phase, investors move into the “Buying the Hype” phase, according to Rekt Capital.
During this phase, Bitcoin’s price grows, driven by a subsequent “Sell the News” movement in the third phase, characterized by a “Pre-halving retrace”.
Bitcoin Price Under Pressure by Miners
Bitcoin miners are actively preparing for an expected decrease in revenue resulting from the upcoming halving in April.
After the halving, the miner rewards will drop from the current 6.25 BTC to 3.125 BTC.
Decline in Bitcoin Miner Reserves
Data compiled by CryptoQuant shows that the Bitcoin miner reserves have declined by 8,400 tokens since the beginning of 2024, reaching a level of 1.8 million.
This figure matches levels last seen in June 2021, and analysts interpret this decrease as a sign that miners are actively selling their tokens.
Miners Selling Holdings
The sales by miners seem to be exerting additional selling pressure on the Bitcoin price, which has been struggling since the Bitcoin ETF launch last month.
Following the approval of ETFs, CryptoQuant reports a net transfer of 3,617 Bitcoin from miner wallets to exchanges.
Impact on Smaller Mining Operations
“Miners seem to be selling their holdings of Bitcoin to finance the purchase of more efficient mining rigs.
The reduction in revenue could especially impact smaller mining operations, potentially pushing them out of business,” noted crypto exchange Bitfinex.
