Crypto commentator Willy Woo; He says that especially after the halving, it is necessary to pay attention to the stock markets.
Bitcoin users can now shop with each other using any exchange or P2P platform. A person who wants to buy Bitcoin can find someone who wants to sell Bitcoin and get BTC from it, and vice versa. Thus, a certain balance is established between the buyers and sellers in the market.
Bitcoin miners and Bitcoin exchanges can disrupt this balance. Because both miners and stock exchanges are trying to generate revenue with cryptocurrencies and turn them into fiat immediately. This mobility from miners and exchanges creates a selling pressure that can disrupt the functioning of the market.
Bitcoin will be halving in the coming days, and miners will receive 6.25 BTC, not 12.5 BTC per block. This means that the amount of Bitcoin miners will sell will be reduced by half.
According to some analysts, this is one of the things that will help Bitcoin price go up. With Halving, the selling pressure on BTC will ease and supply will decrease. This will naturally lead to an increase in the price of Bitcoin.
Crypto commentator Willy Woo thinks that the pressure on Bitcoin will not end immediately. After halving, the pressure from the miners will ease, but the stock markets will continue to sell transaction fees that they collect from users with cryptocurrencies.
Printing Will Continue
At this point, Woo specifically points to BitMEX futures exchanges and says that sales pressure will result from these exchanges. Because a futures investor with a capital of 500 thousand dollars now can “create 400 million dollars monthly” using this account and the stock exchange will earn “80 thousand dollars commission” from these transactions. This commission won by the exchange returns to the market as selling pressure.
Woo summarizes the effects of exchanges on the market as follows:
“You can think of exchanges as if they were taxing traders. Exchanges collect these taxes on Bitcoin and sell these BTCs for fiat money. ”
According to Woo, futures exchanges have different benefits such as “providing liquidity to the market”. But this does not change the fact that these exchanges will apply sales pressure to the market. And this pressure causes Bitcoin price to become more volatile and the market value of Bitcoin to grow more slowly.