Bitcoin Selling Could Pick Up before BTC Halving 2024, Says Crypto.com CEO

The Bitcoin halving event is set for around April 20, 2024, and Kris Marszalek, the CEO of Crypto.com, forecasts constant selling pressure in the market.

In a recent interview conducted by Bloomberg, Marszalek outlined the potential market movements before this crucial date in the cryptocurrency calendar. The event, which halves the reward for mining Bitcoin transactions, historically affects the value of the cryptocurrency and mining community.

Marszalek expects that the short-term market reactions could be chaotic, although he is positive about the long-term Bitcoin value gains. The price surged during the Asian trading hours at the start of the week due to the approval of spot Bitcoin ETFs in Hong Kong; however, the price fell afterward. This volatility highlights the market’s reaction to the global financial events and speculative trading activities that build up to the halving.

Bitcoin Miners and Market Dynamics Impact

The next halving will reduce mining rewards by half and will be a huge challenge for Bitcoin miners. It is estimated that miners may have to offload around $5 billion worth of Bitcoin to cover higher operational costs after halving. This substantial dumping could lend to the pricing pressures envisaged by Marszalek. For readiness, miners have reported that they accumulate Bitcoin and upgrade their equipment to cope with anticipated distortion in computational requirements.

Moreover, this preparatory action by miners indicates a strategic approach to the forthcoming challenges. Historically, such halvings have led to increased mining costs and a revaluation of miners’ economic models. How miners adapt to these changes can significantly influence market dynamics, affecting both the supply side and overall market sentiment.

Bitcoin’s Market Dominance and ETF Influence

In the broader cryptocurrency market, Bitcoin continues to assert its dominance, achieving a three-year high with 55% market dominance. This rise is partially attributed to the substantial capital inflows into newly launched spot Bitcoin ETFs, which have garnered about $56 billion in assets within just three months. The performance of these ETFs reflects growing investor interest and confidence in Bitcoin, bolstering its market position despite recent price volatility.

#Bitcoin ETF demand has stagnated for 4 weeks, yet on-chain accumulation remains very active, even when excluding ETF settlement transactions. pic.twitter.com/PqMTzJrAym

— Ki Young Ju (@ki_young_ju) April 16, 2024

However, after several weeks of robust inflows, the growth rate of these Bitcoin ETFs has tempered, marking a period of stabilization after their initial surge. Despite this slowdown in ETF activity, substantial on-chain accumulation by large-scale Bitcoin holders, or ‘whales,’ continues to be robust. This ongoing accumulation activity could play a crucial role in stabilizing Bitcoin’s price in the face of selling pressure from other market participants.

With only a few days left until the halving, the market will be keeping an eye on the possibility of sellers going up, as Marszalek put forward. The speculation of these events usually results in trading strategies such as ‘buy-the-rumor, sell-the-news’ behaviors, which could explain some of the recent price movements in the Bitcoin market.