Big Bitcoin Shakeout Before Breakout As Halving Approaches?
Greetings, hope this evening finds everyone well out there. The Bitcoin Halving looms nearer as each day goes by and so does speculation.
From the Daily Hodl:
According to the report, the halving is likely to trigger a “shakeout before the breakout”. The shakeout phase could see widespread capitulation as Bitcoin miners who can’t afford to pay their bills sell their BTC holdings and switch off their rigs, causing the price of BTC to drop down to $5,000.
After all the inefficient miners have capitulated, the firm says a significant amount of the sell pressure from miners will be removed, leaving a solid backbone of strong miners who don’t need to offload their Bitcoin.
In addition, Blockware Solutions analyzes Bitcoin’s built-in difficulty adjustment, which automatically reviews network activity and adjusts how much computing power is required to process transactions. The researchers expect it to be a key factor keeping miners in the green and ensuring that BTC hits a bottom.