The cryptocurrency community analyst and influencer Willy Woo predicts this after the Halve, the miners of Bitcoin They will no longer be the biggest sellers of cryptocurrency. Just a few hours after halving the block reward, the analyst came across some interesting observations.
In a Tweet thread Woo, co-founder of Hypersheet, pointed out that cryptocurrency exchanges will bear the selling pressure of Bitcoin that miners used to have. With this in mind, he added that the exchange You will likely start selling your cryptocurrency reserves, which are made up of trading fees.
After this halving in 2020, miners will no longer be the largest Bitcoin sellers. It will be the start of the crypto exchange as a top seller. The main selling pressure on Bitcoin will soon come from exchanges that sell their BTC odds in cash.
In this series of ideas, the analyst stated that you “Imagine exchanges as fiscal agents for business people“” In Woo’s opinion, these commercial prices are for exchange sold to cover operating costs could affect the positive development of the price Bitcoin.
This tax, which is drawn from the BTC rates, is poured into the markets and sold for fiat money. It is similar to miners, where the coins earned by watering down the reserve are poured into the market that new demand has to accept.
Exchanges will take the pressure to sell the miners after that Halve
A few hours away, the next event from Halve includes reducing BTC block rewards from 12.5 to 6.5, which is expected to trigger a big change for the mining community. This is done as a total supply of Bitcoin moves towards its total limit of 21 million coins. In this regard, Woo said that mining block rewards will drop to BTC 900 from 1,800 BTC per day.
The analyst, in turn, estimated that the exchange generated by cryptocurrencies 1,200 Bitcoins a day from the prices. However, the mining sector will earn around 33% less BTC than the stock market. This way after HalveThere are more ways that the main selling pressure comes from that exchangethat of the miners.
There are only two unmatched selling pressures on the market. (1) Miners who water down the offer and sell it on the market is the hidden tax from monetary inflation. AND (2) Exchanges that tax traders and sell on the market.
This move directly affects the price of BitcoinWoo says, possibly holding back the major cryptocurrency uptrend.
When I look at the long-term BTC / USD price chart 2017-2020, the rise in BitMEX futures exchanges has left an irrevocable price footprint. Because of the additional sales pressure, we now have a lot more on our side.
While futures exchanges bring liquidity to the markets and provide useful cover for legitimate use cases, from now on they will be the greatest downward pressure on Bitcoin.
Prices of exchange have always existed
Meanwhile, other enthusiasts have argued differently from Woo and found that the market for Bitcoin You have already included exchange rate printing in your price.
According to the enthusiast of Bitcoin “”I am a nomad“All important exchange Cryptocurrencies are already selling a large percentage of their fees in cash through the market or with a long-term strategy. The Twitter user who replied to Woo’s commentsdisagreed with his forecast:
Every major exchange already sells a large percentage of the cash fee (through its own market or through a long-term tranche). I know that because I was on the buy side in such a business. This does not lead to new sales pressure that people should fear. It’s the same as always.
Woo differed from this opinion instead and emphasized that for him Halve Before 2016, futures trading taxes were out of the picture. “”A big change in the relationship between miners and stock market earnings in the past 4 years. It is an unexplored area“”
What will happen to the miners after that? Halve?
Within a few hours of the drawdown event, the price of the main cryptocurrency dropped. After being close to $ 10,000 on May 7th and 8th, Bitcoin Today the value is around USD 8,600. Movement that may be related to the high expectations that users of the ecosystem have before Halve.
Aside from the signs of recent weakness that the cryptocurrency may show, looking at the long-term outlook is much more encouraging. Although many analysts have highlighted that the next reduction due to low profitability could lead to the abandonment of the network by many miners, the response has been different in the past. In an optimistic comment on the attitude of the miners, the user of Twitter and crypto enthusiast, “Samson Mow“He commented:
Bitcoin hash has increased 8,100% since halving in 2016. We were at ~ 1.56 Exahash in mid-2016. Today we are at ~ 127 Exahash. Miners are very optimistic about BTC.
#BitcoinThe hashrate has increased by over 8100% since halving in 2016. We were at ~ 1.56 exahash in half in 2016. Today we are at ~ 127 exahash. Miners are very optimistic $ BTC. pic.twitter.com/SZMmSMyg7N
– Samson Mow (@Excellion) May 10, 2020
It should be noted that on May 3 as the price of Bitcoin saw a progressive increase in levels of Hash from Bitcoin They reached a new all-time high. Mining has become more competitive with the rise of cryptocurrencies in recent years. Given the various challenges that have arisen in the industry, new solutions for the profitability of mining activities have been created and new miners have been added to the ecosystem.
It remains to be seen how the miners will react to the new change and whether they will actually do so. exchange You will replace them in terms of sales pressure. In the meantime, many enthusiasts hope that the long-term positive outlook will continue to grow Bitcoin in the coming years.
Links of interest
Reset your watch because Bitcoin halving is earlier than expected
Halve Bitcoin: How many cuts are left? What will happen in the future when the last bitcoin is ready?
Sources: DailyHodl, Cointelegraph, CryptoSlate, Twitter
Hannah Estefanía Pérez’s version / DailyBitcoin