Bitfinex's latest weekly report pointed out that Bitcoin miners have sold part of their reserves in advance before the halving, which effectively dispersed the market selling pressure and prevented a sharp drop in prices. At the same time, the demand for the newly launched Bitcoin spot ETF in the United States also helped stabilize market sentiment.
CryptoQuant data shows that miners have significantly reduced the amount of Bitcoin they are sending to exchanges in March, suggesting they were planning their selloffs in advance. Although the market may be affected to some extent in the short term, in the long term, this strategy will help miners adapt to the new environment after the halving. Since the halving, the price of Bitcoin has not fallen sharply, but has increased by about 4.5%, continuing the upward trend. This is due to the adjustment of miners’ strategies and the positive impact of ETF demand on market sentiment. The “massive” flows of ETFs significantly impact market pricing, deviating from conventional supply and demand frameworks.
Bitfinex expects that after the miners' income decreases, the price increase and the expansion of mining business will compensate for the reduced rewards, and the negative market impact will be temporary. At the same time, the amount of Bitcoin purchased by ETF issuers has exceeded the amount of new coins created, and the market supply is expected to tighten. (Cointelegraph) #crypto2023A