The upcoming Bitcoin halving may affect your holdings

  • The upcoming Bitcoin halving could trigger a relief rally for Bitcoin, according to new data from CryptoQuant.
  • The miner’s income decreased as the owners sold their BTC at a loss.

Bitcoin [BTC] owners may have something to look forward to next year. according to new information provided by CryptoQuantThe next Bitcoin halving, which is expected to happen in May 2024, could be a relief rally for the price of BTC.

How much Can you get BTC for $1?

The glass is “half” full

Over the past few years, every Bitcoin halving has been preceded by a relief rally. The UTXO (unspent transaction output) for Bitcoin also witnessed a temporary increase during the same period. UTXO is the technical term for the amount of digital currency remaining after a cryptocurrency transaction.

If traders are banking on a repeating date, then it would be safe to say that there will be a lot of interest in BTC piling up just before the comfort rally.

However, the upcoming halving may not be good news Bitcoin miners. After Bitcoin halving, the block reward generated by miners will decrease significantly.

Despite the potential for lower earnings, miners’ behavior showed no signs of selling pressure. According to data provided by Glassnode, the volume of miner traffic has reached a one-year low 475.47 BTC and continued to decline over the past few months as of press time.

However, miners held on to their BTC despite the drop in income. According to data collected by Glassnode, BTC mining revenues have dropped significantly over the past few weeks. If the earnings of miners continue to decline, selling pressure on miners will increase in the near future.


Source: Glassnode

Fortunately, the decrease in the income of miners did not affect the large addresses interested in BTC.

Bitcoin loses

from information provided by Glass knotAddresses with more than 10 Bitcoins were observed to reach a two-year high of 155,711 addresses as of December 29.

Although the number of large addresses on the Bitcoin network continued to grow, their holdings were not profitable. This was demonstrated by the decreasing MVRV ratio of the royal coinage.

A falling MVRV ratio suggested that most BTC holders would sell Bitcoin, they would do so at a loss. The shrinking long/short spread, coupled with increasing losses in trading volume, suggests that a number of short-term BTC holders are already exiting their positions as their portfolios bleed.


Source: Sentiment

It remains to be seen whether other long-term holders will follow suit in the coming months. So that aAt the time of writing, BTC was trading at $16,566.19. Its price has decreased by 0.06% in the last 24 hours.

This article originally appeared here.

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