Bitcoin is going through a tough crypto bear market as we approach the next halving cycle in 2024. Many crypto investors are wondering if they should sell Bitcoin before the next halving because BTC may crash below $15,000 or worse. Some crypto experts are predicting that BTC will go to as low as $3,500 leading up to the 2024 halving event.
Should You Sell Bitcoin Before The Next Halving?
Based on historical data, it’s actually better to buy Bitcoin leading up to the next halving if you want to maximize your gains.
Selling during the bottom of the bear market means you will miss out on epic gains during the next crypto bull run. There are several leading indicators showing that Bitcoin could bottom soon and start moving higher in 2023.
The Puell Multiple Indicates Bitcoin Will Move Higher Leading Up to the Next Halving
Does it make sense to sell Bitcoin if BTC’s price will move higher in the near future? According to the Puell Multiple, Bitcoin has already bottomed in price and should continue moving higher.
This leading Bitcoin indicator shows when Bitcoin mining revenue is getting high (red zone) or when mining revenue is trending lower (green zone).
Whenever the Puell Multiple enters a green zone, Bitcoin has bottomed out in price and moved up much higher.
The Puell Multiple is calculated by dividing the daily issuance value of bitcoins (in USD) by the 365-day moving average of daily issuance value.
Selling Bitcoin Before The Next Halving Could Cost You a Fortune
This is not financial advice but I suspect many Bitcoiner will regret selling their holdings before 2024. Crypto went through hell in 2022 yet the price never dipped below $17,000.
That’s an incredible feat considering the stock market crashed and sent many growth stocks down up to 99%.
Bitcoin will enter block #770,000 in January 2023 and could start soaring in price leading up to the next halving. If history repeats itself then selling Bitcoin before the next halving is one of the worst things you could do.
Borrow Against Your Bitcoin or Apply for a Loan If You Need Cash
Need cash now? You may consider borrowing against your Bitcoin or applying for a personal loan to increase your cash position. Legendary investor Warren Buffett’s cash position is huge and he recommends keeping around 20% of your portfolio in liquid cash investments to give yourself a financial cushion.
Coinbase and BlockFI allow you to borrow against your Bitcoin holdings if you need cash. It’s a quick and easy way to get cash without selling your crypto.
Another option is to apply for a personal loan using Upstart to get cash within 1 business day. Upstart charges a 25% interest rate on average so that’s definitely one of the downsides. However, you can borrow up to $50,000 even if your credit scores aren’t great.
Selling Bitcoin before the next halving could cost you a fortune. My goal is to never sell Bitcoin so I don’t have to worry about selling anytime soon. Hyperbitcoinization means Bitcoin may be accepted everywhere so there is no need to exchange my hard-earned BTC for fiat dollars.
Do your own research and figure out what’s best for you. You may decide that doing nothing could pay off best in the future.