Bitfinex reports that miners sold fewer Bitcoins before BTC Halving, and the launch of US spot ETFs resulted in the favor of BTC after the Halving event.
Less selling of Bitcoins before Halving helped BTC restore its price. The spot EFTs in the United States may have “spread out the potential selling pressure,” said Bitfinex.
“It appears that miners have executed their selling in advance, which has turned out to be advantageous for the market in the short term,” on April 22, the crypto exchange wrote in its weekly market report.
CryptoQuant data shows that the amount of BTC sent to exchanges by miners in March is less than in February. A difference of 1300 BTC on a daily average in February, equivalent to $86.4 million.
“We assume miners were already selling their BTC holdings or collateralizing them to upgrade their machinery and infrastructure,” Bitfinex stated.
After hitting a forty-day low of $60,000, Cointelegraph market pro shows that Bitcoin started picking its pace from April 17, before the Halving event on April 20. It gave a rise of 4.5% to $66,597.
Source: Cointelegraph market pro
Miners encounter a decrease in reward per block, which shrinks to 3.125 per block, approximately at $208,000 current prices.
In the past, miners experienced “significant selling pressure,” trying to maximize their profit before they faced a 50% fall in reward. This results in market instability and a decline in the price of BTC, Bitfinex reported.
A rise in the price of BTC compensates miners’ operations typically to “compensate for the reduced rewards,” as the negative impact “is often temporary, as market dynamics adjust,” it stated.
Bitfinex Report: Bitcoin ETFs Reduce Halving Impact
Bitfinex stated that the demand from big institutions for the new United States spot Bitcoin ETFs helped to prevent a sharp decrease in the BTC price because of the change in how miners get rewards.
Last week, Bitcoin spot ETFs touched a milestone by reaching $192 million in Bitcoin investment products. Can “significantly sway market sentiment and pricing” and are often parted from “the usual supply-demand framework,” Bitfinex added.
“The added dynamic of the halving-induced’ supply shock,’ the combination of ETF demand and constrained supply, could drive further price appreciation for BTC.”
Bitfinex also expects that ETF issuers will buy more Bitcoin than the new Bitcoin created since the ETFs started, which might decrease the value of Bitcoin.
According to an estimation by Bitfinex, on average, $30 million worth of Bitcoin is supplied to the market after halving. In comparison, the net inflow of ETFs in the market is worth $150 million.
It further stated that the demand for ETFs is much bigger than the total available BTC in the market, with a difference of almost 150,000 BTC till now. It writes, “We expect this trend to continue in the coming months.”
