Marcus Thielen, Head of Research at consulting firm 10x Research, believes that there could be a large outflow of Bitcoin (BTC) from miners in the next six months, based on historical data.
Thielen pointed out in his research note that Bitcoin miners are preparing to sell off a significant portion of their BTC reserves, which have been accumulating in recent months in anticipation of the halving. According to the expert, this could affect the dynamics of the cryptocurrency market.
"The cryptocurrency market may face a serious problem during the six-month summer lull," Markus Thielen wrote in a note.
The analyst stressed that this is a standard pattern ahead of the halving, which is expected on April 20. A few months before the halving, miners actively start stocking up on BTC, which leads to an imbalance between supply and demand and the subsequent rise in Bitcoin prices.
Thielen also emphasized in the note that Bitcoin has a 32% upside potential on the halving, but expectations that miners could liquidate $5 billion worth of BTC are contributing to the sideways movement of the largest cryptocurrency by capitalization.
"The overhang from this sell-off could last four to six months, which explains why Bitcoin could go sideways over the next few months, as it has after previous halving declines," the Head of Research at 10x Research said in a note.
At the same time, the analyst pointed out that altcoins could bear the brunt of this situation in the cryptocurrency market.
It is worth noting that most crypto analysts predict a bullish growth of altcoins in the near future. They believe that after the halving of Bitcoin, the interest of investors and traders will shift sharply to altcoins, as these assets have a higher risk/reward ratio.