Several factors are contributing to the decline of BTC, such as the stagnation in demand for spot Bitcoin ETFs, the strengthening of the US dollar, among others.
It is estimated that this halving will be a little different from the previous three for several reasons.
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A few hours before the Bitcoin halving occurs for the fourth time, the price of the main cryptocurrency registers sharp falls, stagnating around US$61,000 this Thursday, and then recovering US$62,000. However, there is no alarm among investors, as it would be within the phases prior to the long-awaited event.
Previously, the value of Bitcoin had lost crucial support by falling below $60,000, something not seen since March 5. This level is crucial for analysts, since if the price continues to fall below US$59,000, the bullish outlook could be delayed in the short term and open the door to a correction towards the area between US$45,000 and US$50,000. On the other hand, a bounce could take bitcoin back to all-time highs and bring it closer to the $100,000 mark.
Several factors are contributing to BTC’s decline, including stagnant demand for spot Bitcoin ETFs, strengthening US dollar, geopolitical tensions in the Middle East, and lack of relief from prolonged interest rates in the United States.
As for the rest of the crypto market, Ether (ETH), the second largest cryptocurrency by capitalization, falls below $3,000. Other cryptocurrencies such as Cardano (ADA), Solana (SOL), XRP, Dogecoin and Shiba Inu also registered significant decreases in their prices, showing a panorama of volatility in the digital market.
Bitcoin Halving: What you need to know
It is estimated that this halving will be a little different from the previous three for several reasons. Overall, there is positive sentiment both before and after the event, which is expected to take place around April 20, which has a mixed impact on the productivity of minersexplains to this medium Pablo MontiBrand Manager for Europe and Latin America at BingX in dialogue with Ambit.
And he warns that, although historically said event is linked to significant increases in Bitcoin prices, “This outcome is not guaranteed and is influenced by broader economic conditions than the halving itself.”.
Monti indicates that throughout the first quarter of 2024, We have seen Bitcoin break all-time highs and rise over 60%. “Currently, we are experiencing the five initial stages that lead to the halving”, he maintains.
This is because the market has already observed a downward movement, followed by a rebound, and “now we face the retreat phase. After the halving occurs, we anticipate a period of reaccumulation that will lead to an eventual uptrend”, warns the analyst.
Source: Ambito
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