According to the CEO of Coinify, which provides payment solutions for cryptocurrencies, Bitcoin halving could turn into a “buy the rumor, sell the news” event.
Rikke Staer, the CEO of Coinify, said, “In this market cycle, there are now more sophisticated participants and institutional investors, so we could see a ‘buy the rumor, sell the news’ situation in this halving.”
According to current data, the block reward given to Bitcoin miners will decrease from 6.25 BTC to 3.125 BTC with the halving taking place on April 20th.
Staer said that miners who are not operating efficiently enough may fall behind in the industry because of the decrease in mining revenue, and “these miners may have to sell the Bitcoins they own to cover their electricity expenses, equipment maintenance, and other operational costs.”
Miners starting to sell Bitcoin could increase the selling pressure on the market and drive the price down. Staer said, “This could create a negative cycle that forces more miners to sell due to falling prices, putting further pressure on the price.”
