BTC Miners Expect Bitcoin Price to Surpass $12K After Reward Halving
Miners are hoarding most of the Bitcoin they mine ahead of the halving, showing they expect a much higher price after the event.
Miners have sold less Bitcoin (BTC) over the past seven days as the highly anticipated block reward halving bitcoin investment sites approaches. This means that miners expect the price of Bitcoin to increase substantially over time after the halving occurs.
The Bitcoin halving, which is set to occur on Tuesday, occurs approximately every four years. When triggered, it decreases the amount of Bitcoin that miners are rewarded with for their troubles. Since new Bitcoin is introduced to the market by miners selling it, the halving drops the rate in which new Bitcoin is introduced.
Given the deflationary nature of Bitcoin, any event that affects its supply will have a significant impact on the price trusted bitcoin investment sites of the asset. In the medium to long term, data shows that miners are confident the halving will push the price up substantially.
Bitcoin miners, especially large-scale centers, run highly sophisticated operations with professional traders and market analysts. They frequently assess liquidity and overall sentiment in the market. If miners deem liquidity in the cryptocurrency market to be low, they refrain from selling.
When there is not enough buying demand in the market, selling a significant amount of Bitcoin can lead to an abrupt price drop with high slippage. The term slippage double your bitcoin is used to describe a movement in the price of an asset when a large sell or buy order is executed.
Explained that Bitcoin’s price is technically approaching a major multiyear resistance level. Although traders remain divided on whether Bitcoin will break through on its first try, investors anticipate a prolonged uptrend for Bitcoin in the medium term.