Bitcoin Halving Is Approaching! How Will It Affect the Holders? According to new data from CryptoQuant, Bitcoin’s upcoming breakout may trigger a rally for Bitcoin.
Miners’ incomes decrease as holders sell their BTC at a loss. Bitcoin [BTC] holders may have something to look forward to in the coming year. According to the latest data provided by CryptoQuant, the next Bitcoin crash, which is expected to happen in May 2024, could be a catalyst for the price of BTC.
Glass “half” full
Over the past few years, every bitcoin crash has led to a relief effort. The UTXO (unpaid transaction token) for Bitcoin halving also saw a temporary increase at the same time. UTXO is the technical term for the amount of digital currency left over after a cryptocurrency transaction.
If traders are betting that history repeats itself, it would be safe to say that there will be a lot of interest in rallying BTC shortly before the rally. However, the upcoming half may not be good news for Bitcoin miners. When Bitcoin decreases, the block reward produced by miners will decrease significantly. Despite the possibility of receiving less money, the behavior of miners does not show signs of selling pressure.
According to the data provided by Glassnode, the output volume of the miner reached a one-year low of 475.47 BTC and continued to decrease in the past few months until recently. However, miners are holding on to their BTC despite the decline in revenue. According to the data collected by Glassnode, the revenue from BTC mining has decreased significantly in the last few weeks. If the income from miners continues to decrease, the selling pressure on miners will increase in the near future.
Fortunately, the decrease in the amount of money produced by miners did not affect the large number of addresses interested in BTC. Bitcoin halving.
Bitcoin halving is missing
From the data provided by Glassnode, it was found that addresses with more than 10 Bitcoins reached a two-year high of 155,711 addresses as of December 29.
Although the number of large addresses continues to grow in the Bitcoin network, their holdings are not profitable. This is shown by the low MVRV ratio of royal coins.
The falling MVRV rate suggested that if many BTC holders sold their Bitcoin, they would do so at a loss. The narrowing of the long/short gap, along with the increase in losing trades, suggests that many short BTC holders have already exited their positions and are bleeding their wallets.
It remains to be seen whether long-term bitcoin halving holders will follow in the coming months. That said, at the time of writing, BTC is trading at $16,566.19. Its price has fallen 0.06% in the last 24 hours.