Holders of 1,000 to 10,000 Bitcoin began accumulating this week, which indicates that they are trying to push the price higher in the short term in an anticipation of a selloff after the upcoming halving.
Santiment researchers claim a large number of inactive addresses are now transferring BTC, which signals that traders may try to sell the top in anticipation of a coming decline in Bitcoin’s price.
Dino Ibisbegovic, Santiment’s head of content, said sentiment about the upcoming Bitcoin halving may be changed.
“Our social media data suggests an increasingly bearish outlook on the pre-halvening price action…
The Bitcoin-related sentiment was sky-high on most social media channels in last week’s run up to $9k. Since then, however, we’ve seen the mood cooling down. This is most visible on Telegram, which recorded a 3-month high in bullish BTC sentiment during last week, only to decline dramatically since the move above $9k.”
An anonymous Twitter user naming himself ‘Jack’ expects Ethereum (ETH) to rally until the expected launch of Ethereum 2.0 in July, adding that this is the proper to time to sell.
“If we get the rally on Ethereum I am expecting, then July seems like the perfect sell the news moment with the ETH 2.0 launch. Aligns with multiple analysis angles that expect June/July to be leading in to a market wide retrace, which I’ll start sharing over the next weeks.”
BTC inflation rate may hit 1.8% after halving
When Bitcoin’s (BTC) halving happens, the cryptocurrency’s annual inflation rate would be almost half the global average.
Mati Greenspan, a crypto expert, said on his Twitter account that Bitcoin’s annual inflation (BTC) would decline from 3.65 percent to 1.8 percent when the halving happens. The global average inflation rate hit 3.41 percent last year, and around 3.56 percent so far in 2020.
“In just 15 days, the annual inflation of #bitcoin will go from 3.65% to just 1.8%… approximately half of the global annual inflation rate.”