After the Bitcoin Half-Day on May 12th, traders generally expect the higher digital currency price to drop by market value.
According to Coin Telegraph, selling pressure may come from crypto exchanges, according to Coin Telegraph.
Willie Wu, co-founder of Hipparchit, said it was likely that stock exchanges would begin selling selling their stock of crypto assets made up of trading fees. Normally, exchanges receive trading fees in the form of digital currencies and sell them to cover operating costs.
Given that the crypto exchange market generates 1,200 bitcoins a day from fees - the equivalent of $ 11.6 million - it might slow Bitcoin's upward trend.
selling pressure from cryptocurrency exchanges may spoil bitcoin recovery
As a result of the Bitcoin Half Tier, the miners will produce half the amount of Bitcoin they have been used to in the past four years.
On a daily basis, miners' revenues will drop from 1,800 bitcoin to 900 bitcoin, based on Wu's rough estimates.
When the revenues of miners drop in half, the Bitcoin mining sector will gain 33% less than the crypto market.
As such, the risk of large sales after bisection comes from exchanges more than mining companies.
Where Wu explained: After this 2020 demarcation, miners will stop being Bitcoin's largest sellers.
He continued: The beginning of the crypto exchanges will be the leading sellers. The biggest selling pressure on Bitcoin will be near exchanges that sell Bitcoin fees collected in the form of banknotes.
