After the upcoming Bitcoin halving event, Bitcoin miners are anticipated to release around $5 billion worth of Bitcoin into the market, potentially leading to a prolonged period of reduced activity in the cryptocurrency space, according to insights from 10X Research.

Markus Thielen, the head of research at 10X, highlighted that Bitcoin miners have amassed significant Bitcoin reserves, which they plan to gradually sell off post-halving to avoid sudden drops in revenue. This strategy is expected to be adopted by major players like Marathon, the world's largest Bitcoin miner, with other miners likely to follow suit in a similar fashion.

The impact of this planned selling spree could linger for four to six months, causing Bitcoin prices to stabilize without significant fluctuations. Historically, miners tend to accumulate Bitcoin before halving events to take advantage of increased supply, aiming to benefit from price surges that typically follow when supply diminishes post-halving.

Potential Market Dynamics Post-Halving: Increased BTC Supply and Altcoin Impact

Following the halving, Thielen predicts that the market could see a daily influx of up to $104 million worth of Bitcoin, with Marathon alone potentially offloading 14-15 BTC per day. This influx of supply could potentially counterbalance the demand-supply dynamics that fueled Bitcoin's pre-halving rally.

The current Bitcoin price surge, standing at $66,529 as of the latest data, reflects a 50.6% increase this year, indicating strong market activity leading up to the halving event. However, Thielen warns that this surge might be followed by a period of sideways trading as miners release their Bitcoin reserves into the market.

In terms of altcoins, Thielen suggests that they might experience a delayed impact from the Bitcoin selloff, with historical trends indicating that any potential rally in altcoins typically occurs approximately six months after a Bitcoin halving event. Despite a recent drop in the altcoin market, there has been renewed interest from traders in smaller-cap cryptocurrencies, leading to a slight increase in the total market cap for altcoins. As of the latest data, the total market cap for altcoins stands at $1.051 trillion, showing resilience in the face of market fluctuations.