Bitcoin

Falling Bitcoin Fees Could Lead to Faster Miner Sales, Analysts Predict

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The recent halving reduced coin issuance per block from 6.25 BTC to 3.125 BTC. The price of BTC already faces downside risks due to MT Gox’s $9 billion payment to creditors, and an increase in selling pressure from miners could worsen the situation. High fees have eased BTC miners’ post-halving stress, but they now feel the pressure of reduced miner rewards. Markus Thielen, head of 10x Research, expects miners to liquidate around $5 billion worth of BTC in the coming months. Cryptocurrency exchange Deribit made a similar point about X, discussing an options strategy called the “bear call spread.” Bitcoin hits lower highs and miners facing dwindling revenues and fees are pressured to sell their assets.

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