In the field of cryptocurrency, Bitcoin halving is a feast that has attracted much attention. However, when this feast is over, what challenges will the market face? Perhaps the biggest selling pressure will come from exchanges. Let's explore this topic in depth.

At the arrival of the important node of Bitcoin halving, exchanges play a vital role. On the eve of halving, investors may adopt different strategies, including transferring Bitcoin to exchanges for trading and selling. This behavior is bound to bring huge selling pressure to exchanges, because the influx of a large number of Bitcoins may trigger market fluctuations and affect price stability.

As the Bitcoin halving event approaches, exchanges have stepped up their preparations for selling pressure. They have alleviated the possible selling tide by increasing liquidity, optimizing trading systems, and strengthening risk control. However, market uncertainty still exists, and exchanges need to remain vigilant at all times to ensure smooth trading.

After Bitcoin halving, how exchanges deal with possible selling pressure is a topic of much concern. Some exchanges may take restrictive measures, such as limiting large transactions and increasing handling fees, to curb selling sentiment. However, this approach may also cause dissatisfaction among investors, and even cause some investors to choose to withdraw from exchanges, thereby affecting the entire market ecology.

In addition to the exchange's own preparation and planning, investors also play a vital role after the Bitcoin halving. They need to look at market fluctuations rationally and avoid blindly following the trend of selling, thereby reducing the negative impact of selling pressure on the market. At the same time, investors can also choose a stable investment strategy, including long-term holding, regular fixed-amount investment, etc., to avoid the risks brought by market fluctuations.

After the Bitcoin halving, the selling pressure of the exchange is not only a technical challenge, but also a test of market reshuffle and risk management. Only through the joint efforts of exchanges, investors and regulators can we cope with the challenges that may come and ensure the stability and healthy development of the market.

In summary, the biggest selling pressure that Bitcoin may face after the halving or the point of view from the exchange cannot be ignored. Only through all-round preparation and cooperation can the potential risks be resolved and the long-term prosperity of the market be achieved. Let us look forward to the performance of the market after the Bitcoin halving and contribute our own strength to the development of the cryptocurrency field.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

The biggest selling pressure after Bitcoin halving may come from exchanges! Willy Woo, the originator of the Bitcoin NVT valuation model, believes that after this Bitcoin halving, exchanges will replace miners as the largest sellers of Bitcoin and need to cash out BTC to pay for operating costs.

After the Bitcoin block reward is halved in 2020, miners will no longer be the largest sellers of Bitcoin. As the leading Bitcoin seller, this trend number will be the dawn of the future.

The biggest selling pressure for Bitcoin will soon come from cryptocurrency exchanges, because they need to sell the BTC fees they collect and exchange them for fiat currency to pay for operating costs.

You can think of cryptocurrency exchanges as tax collection agencies for traders. The fees collected by exchanges from each BTC transaction are like a "tax" imposed on traders. After that, cryptocurrency exchanges will sell the collected BTC in the market and exchange them for fiat currency, which is similar to miners selling newly mined BTC. Whether it is miners or cryptocurrency exchanges, they will sell BTC to the market to obtain fiat currency. This selling demand needs to be absorbed by the market, and it will also dilute the market supply.

The sale of Bitcoin by cryptocurrency exchanges is very different from ordinary buying and selling transactions. When we say traders are "buying" or "selling" Bitcoin, each transaction is matched, that is, each transaction has a buyer and a seller. (When we say the market is buying and selling, we actually mean that smart money is buying and selling)

There are only two sources of sales in the Bitcoin market that can bring unparalleled selling pressure: the first is miners, who dilute the supply by selling Bitcoin to the market, which is like a hidden tax caused by inflation; the second is cryptocurrency exchanges, which charge fees in the form of BTC, like a tax on traders, and then sell Bitcoin on the market for fiat currency to cover operating costs.

With the rise of cryptocurrency exchanges like BitMEX, futures exchanges are now very competitive, with daily trading volumes reaching billions of dollars. The current Bitcoin market situation is roughly as follows:

Before the halving, miners produced 1,800 BTC per day;

After the halving, miners produced 900 BTC per day;

Exchanges charge 1,200 BTC in fees per day.

When you trade short term candles, it’s easy to achieve $400 million in futures volume per month with a $500,000 collateral account, but this trade will generate up to $80,000 in fees for the cryptocurrency exchange, which is equivalent to selling 8 BTC to the market in the same month for an account holding 50 BTC.

If we look at the long-term price trend of Bitcoin (in USD) from 2017 to 2020, we can see that cryptocurrency futures exchanges like BitMEX have had an irreversible impact on the price, but now we still have a lot of room under additional selling pressure.

Although the current unilateral trend of Bitcoin price has created a special trading environment in which highly leveraged traders can more easily and strategically liquidate most of the traders’ positions - just like the price of Bitcoin squeezed many shorts when it rose from $4,000 to $1,4000 in 2019. Of course, price volatility will also increase accordingly.

It is undeniable that futures exchanges can bring more liquidity to the market and provide extremely useful hedging functions for legitimate use cases, but from now on, the greatest bearish pressure on Bitcoin will likely come from these exchanges.

If we believe that the price of Bitcoin needs to "keep climbing in numbers" and exceed $1 trillion, but the market value exceeds $10 trillion to play a role globally (I am one of these people), then cryptocurrency futures exchanges actually slow down this vision, slow down the speed of rising numbers, and increase volatility.

Finally, let me clarify: Yes, I am a person who trades Bitcoin futures, a long-term spot investor and HODLer, and an angel who drives the continuous development of the crypto asset class.