Bitcoin miners are taking full advantage of the digital currency’s massive price explosion in 2023. On December 29, miners sold more than 3,000 Bitcoins in one day for approximately $129 million. According to popular analyst Ali Martinez, this sell-off could have a negative impact on Bitcoin’s price.
Why Do Miners Sell Their Bitcoins?
The reason for this massive sell-off among miners could be Bitcoin’s next halving, scheduled for April 2024.
At this point, the reward miners receive for producing a new block for the Bitcoin blockchain will be halved. In April, the reward miners receive for producing a new block will be halved, from 6.25 BTC to 3.125 BTC.
At first glance this does not seem good for miners, but it is of course good for the price of Bitcoin. Why? This halves Bitcoin inflation because producing new blocks is the only way to get new Bitcoins into circulation.
In the past, every halving was followed by a new bull market for Bitcoin. Combine this with the spot Bitcoin ETFs launching soon in the US and the Federal Reserve rate cuts everyone expects this year, and you have a very bullish picture.
Where will the price of Bitcoin go in 2024?
Now the big question is of course what 2024 will bring for the price of Bitcoin. Expectations are extremely high and price predictions of over $100,000 are ringing in our ears.
However, remember that aggressive rate hikes by central banks to combat inflation can also lead to a recession.
If a recession occurs in the early months of 2024, it could put significant pressure on Bitcoin’s price. In this regard, a new all-time record is anything but certain.
Valid arguments can be made for both price increases and price reductions.
Source: BTCDirect
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
