So far this week, BTC has seen moderate declines and is bordering on the $43,000 area after the $49,000 level was tested for the first time.
Bitcoin registers a considerable drop this Wednesday. The price of the leading cryptocurrency stagnates and is below US$43,000 with a decrease of more than 5% in the last 24 hours. So far this week, BTC went through moderate declines and bordering on the $43,000 area after the $49,000 level was tested for the first time in two years in the previous week following the approval of spot exchange-traded funds (ETFs).
The rest of the market operates with increases of up to 7.5% led by Solana (SOL), Ethereum (6.9%), Binance Coin (BNB) and Cardano (ADA) by 6.7% and Avalanche (6.1%).
The fall of Bitcoin: the expectation of analysts
Some experts believe that for bitcoin to reverse its current bearish trend, would need to overcome this resistance zone. If he can’t get over it, the possibility of a new fall is on the table.
“To foresee the future of the cryptocurrency market, it is important to understand the lessons of 2023, which teach us the industry’s ability to adapt, innovate and grow, even in the midst of significant challenges. The strong recovery of 2023 serves as a foundation for further advances, growth and possibilities for the crypto world,” they point out in Binance Research.
For their part, at eToro, they believe that now that the institutional investors can be exposed to bitcoin through a regulated vehicle, we could be facing an explosive 2024. “While we’re in for a quieter week in the crypto world – a much-needed respite, according to some – following the approval of bitcoin ETF applications, attention will now turn to the upcoming halving of the cryptocurrency. block reward, ‘halving’ (currently scheduled for 97 days, April 22, 2024)”.
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As they remember, “historically, the halving (an event built into the design of bitcoin, which decreases the mining reward by 50%) has ushered in the next bitcoin bull market. The block reward will fall from 6.25 BTC to 3.125 BTC, and the annual bitcoin inflation rate will go from around 1.7% to around 0.85%, below 1% for the first time.”
Of the rest of the cryptocurrencies, Ethereum is being the best performing asset after the SEC announcement. “It is up 7% against bitcoin since the approval of the ETF. Perhaps it is a sign that the market believes that this pcould be the next cryptocurrency in obtaining approval of a spot ETF applicationgiven that it is the second largest crypto asset by market capitalization and that futures ETFs ethereum are already approved and available,” the analysts add.
Source: Ambito
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