Bitcoin’s hashrate has rebounded to the historic highs seen just before the fourth reward halving event. According to the seven-day simple moving average, the network’s hashrate reached a record 657 exahash per second (EH/s) this week. Bitcoin Hashrate Reaches Unprecedented 657 EH/s Following a significant drop post-halving, much of the hashrate has returned to the […]
Bitcoin News
Bitcoin Miner Rewards Shrink Below Pre-Halving Levels as Network Fees Fall Sharply
After experiencing a period of high fees, onchain transfer costs on the Bitcoin network have decreased significantly. On Friday, the fees peaked at 0 per transaction, but by now they have fallen to just .06 each. Since reaching block height 840,179, miners are now earning less bitcoin in rewards compared to before the halving event […]
Bitcoin News
Pre-Halving Jitters: Bitcoin Price Briefly Slips Below $60,000
The Bitcoin price has recently experienced heightened volatility, causing the largest cryptocurrency in the market to briefly drop below the significant threshold of ,000 for the first time since March 5.
This price decrease comes just days before the highly anticipated Halving event scheduled for Friday. This event has traditionally been viewed as a positive catalyst for Bitcoin’s value due to its impact on token supply.
However, market participants are questioning whether the Halving’s effects are already factored into the current market conditions, leading to extended bearish sentiment.
Long-Term Bullish Outlook Prevails
Bitcoin’s decline saw it plummet by 5% to ,890, though it recovered some losses shortly afterward. Since reaching an all-time high (ATH) of ,700 on March 14, the Bitcoin price has now retraced by approximately 18%.
The downward trend extended to other major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), which also experienced slumps on Wednesday.
The impending Halving, a quadrennial code update in Bitcoin, has raised concerns among investors as to whether it will be a significant market-moving event or a non-event overshadowed by other factors, such as the ongoing discussions surrounding the Bitcoin ETF market, which has seen a significant decrease in terms of outflows.
Nathanaël Cohen, co-founder of INDIGO Fund, noted that market participants are de-risking due to this uncertainty and the additional macro factor of tensions in the Middle East involving Israel and Iran, putting further pressure on risk assets.
The recent decline in Bitcoin’s price was further exacerbated by a wave of liquidations in long positions for digital assets. Last Friday alone, approximately 0 million worth of bullish crypto wagers were liquidated within 24 hours.
Despite the recent market turbulence, some participants maintain a bullish long-term outlook for Bitcoin. Some see the recent liquidations and subsequent flushing out of leverage in the crypto market as a positive development.
Ravi Doshi, head of markets at FalconX, reported increased buying of longer-dated call options on their derivatives desk, suggesting that clients anticipate higher prices in the latter half of the year.
Bitcoin Price Rebounds Above ,000
Following the brief dip below the ,000 mark, the Bitcoin price has rebounded, currently trading at ,600. This recovery is viewed as a bullish sign, with the cryptocurrency’s macro uptrend structure remaining intact as long as price levels of ,000 and ,000 are maintained.
The market is closely watching whether the theory suggesting that the Halving price catalyst is already factored into the current market conditions holds. Additionally, the performance of Bitcoin ETFs in the United States and their potential impact on driving the cryptocurrency’s price back to previous highs are of significant interest.
Furthermore, the recent approval of the spot Bitcoin ETF market in Hong Kong is expected to contribute to increased adoption of the leading cryptocurrency. Although some experts do not consider it as significant as the US ETF market, it is anticipated to generate a surge in price and further strengthen Bitcoin’s position.
Ultimately, the outcome of the Halving event, combined with the developments in both the US and Hong Kong ETF markets, remains uncertain. The ability of Bitcoin to regain its bullish momentum and drive increased demand will be closely monitored.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin Peak Pre-Halving Doesn’t Guarantee Further Gains: Analyst
With the fourth Bitcoin Halving just around the corner, Lady of Crypto, a market analyst and trader, has weighed in on claims concerning this bull cycle.
The crypto analyst shared her insights after analyzing the recent market decline and the impending Bitcoin halving this month. According to the expert, there have been speculations that since BTC broke its all-time high early, the cryptocurrency can continue seeing fresh gains.
Bullish Run Misconception: Bitcoin Can Hit Another ATH?
Lady of Crypto has disregarded the claims that this bull cycle will begin early, saying she believed the community was “lied to and suggesting widespread misinformation” and dismissing the current gains as the signs of a widespread bull run.
As The Halving approaches, the analyst noted that Bitcoin and Altcoins are severely down, but this is not the time to panic. Drawing attention to the 2016 and 2020 pre-halving dips, she highlights that BTC plummeted by 30% and 20% shortly before the event.
Meanwhile, during this pre-halving period, BTC has dropped by over 17%, with altcoins falling by 29%. Although the current decline was severe, Lady of Crypto notes that it is in the range of a typical pre-halving dip and a black swan event.
She compares the COVID meltdown, in which BTC fell by 58% and altcoins by 68%, suggesting that the current decline pales in significance.
Lady of Crypto clarified that Bitcoin Spot Exchange-Traded Funds (ETFs) have been a major factor in BTC breaking its peak early, highlighting that the masses have not yet arrived.
The expert then points to social media presence, revealing that the masses are returning to the crypto market. “YouTube views and subscribers show interest in returning gradually, in line with this time last cycle, as do new Twitter followers,” she added.
This Bull Cycle Is Mirroring Past Halving
Except for BTC’s early all-time high break, Lady of Crypto believes this bull run is unfolding similarly to the last two, albeit with more volatility. However, the volatility suggests this will be the biggest bull market ever.
She advises underexposed investors that the dips are the best chance to purchase BTC during a bull run. Meanwhile, if an investor is overexposed, holding the crypto asset has historically been the best course of action, drawing attention to 2020 and 2021 dips.
Addressing fear and panic among investors, Lady of Crypto cautioned that multiple situations might trigger a panic sell during every bull run. Even though these events appear terrible, like the bull run coming to an end, they are just sideshows.
Marathon CEO Credits Bitcoin ETF on Pre-Halving Price Surge
Fred Thiel, CEO of Marathon Digital Holdings Inc., suggested that recent spot Bitcoin ETF approvals have accelerated the market’s appreciation, typically expected post-Bitcoin halving, by attracting significant capital into the market. Thiel remarked that this shift has led to an unusual pre-halving price increase, diverging from the traditional pre-halving price decline, with Marathon’s break-even rate […]
Bitcoin News
Analyst Warns Of Bitcoin Pre-Halving Retrace Echoing Troubling 2020 Trend
Rekt Capital, a cryptocurrency expert and enthusiast, has identified a similar pattern between the recent Bitcoin pre-halving retrace and the one that took place in 2020 before the crypto asset witnessed an upsurge to its previous all-time high.
Bitcoin Pullback Is Almost Identical With 2020 Pre-Halving Retrace
Bitcoin, the largest cryptocurrency asset, is presently demonstrating momentum, rising over ,000 and recovering from a recent downward trend. Following the recovery, Rekt Capital believes that the pullback might be over, citing a similarity to the 2020 pre-halving retrace.
Given the uncertainty of the crypto market, the analyst is not sure if the recent upsurge marks the end of the pre-halving retrace. However, if that is the case, then Bitcoin would have nearly matched the pre-halving correction from 2020.
According to the analyst, the digital asset has recorded a pullback of over 18% in this cycle. Meanwhile, in the 2020 cycle, it retraced by over 19%, suggesting the potential of the asset mirroring the 2020 movement this cycle.
A further dive into the correction made by the analyst reveals that Bitcoin has been trapped inside the Weekly range (black-black) ever since it retraced by over 18%. Both the upside-wicking 2021 peak and the candle-bodied 2021 peak combine to create the weekly range that Rekt Capital has indicated.
Thus, he claims that BTC reclaiming the ,200 ‘range high’ as support, which has already played out, could signal the conclusion of the recent decline. In addition, this demonstrates that Bitcoin is poised to move over its weekly range and soar higher.
With the 2024 Bitcoin halving drawing closer, the cryptocurrency is having difficulty in reclaiming its most recent peak of ,000. However, there are rumors that today’s increase could mean the pre-halving decline is coming to an end.
Considered Catalysts For BTC’s Strength This Cycle
As of the time of writing, BTC has rebounded to around ,806, indicating a daily increase of over 5%. Its market cap and trading volume are also showing strength, rising by 5.49% and 47.82%, respectively, in the past day.
One of the main drivers of Bitcoin’s growth this cycle is thought to have been the approval of spot BTC ETFs in January 2024. With the acceptance of the product, investors now have a convenient way to profit from Bitcoin’s value without actually owning any of it.
Since then, the crypto asset has witnessed increased adoption from industry leaders and a massive inflow of capital, propelling its price as well. The BTC price has increased from ,000 to a peak of ,000 since the ETFs were approved by the US Securities and Exchange Commission (SEC).
Another catalyst considered to have impacted the coin’s price is the anticipation surrounding the upcoming Bitcoin Halving set to occur in April. In the past, these kinds of events have led to notable price upticks. Due to this, investors will shift their attention to BTC to position themselves for significant gains following the halving event.
Bitcoin Pre-Halving Dip Expected: Will BTC Rally Before US Fed Decision?
Bitcoin remains under pressure when writing and is within a bearish formation following sharp losses on March 19. While prices tank, one analyst on X thinks this retracement aligns with historical performance, especially as the network prepares to slash miner rewards in April 2024.
Bitcoin Retracement Similar To Pre-Halving Cool-Off Of 2020
Based on the analyst’s assessment, BTC is currently down roughly 18% from its recent swing high. This retracement is at the same level as the ballpark 19% decline observed before the previous halving event in 2020.
It’s worth noting that Bitcoin has historically corrected lower after posting fresh highs before halving. Afterward, the coin rallies to fresh all-time highs following halving, driven by a decrease in supply. In this cycle, BTC soared to a new all-time high of ,800 in the first two weeks of March before cooling off to spot rate, a deviation from the usual trend.
As the Bitcoin network gears up for the halving event in mid-April 2024, it’s crucial to note the potential market implications. Some market observers speculate that the current drop could offer entries for investors looking to accumulate at a lower price in anticipation of future price gains.
From the Bitcoin candlestick arrangement in the daily chart, the least resistance path appears southwards. Specifically, following the dip on March 19, the coin remains in a bearish breakout pattern, finding strong rejections from the middle Bollinger Band (BB) or the 20-day moving average. The BB is a technical indicator for gauging volatility.
Will The Federal Reserve Revive BTC Demand?
Currently, Bitcoin is steady. Even so, only time will tell whether prices will recover, breaking above the ,000 level in the days leading up to the halving event in less than a month. Further losses from spot rates mean the dip before halving and after the pre-halving rally was much sharper than in 2020.
As history clearly shows, halving is an important event in Bitcoin. It has repeatedly proven to be a major price catalyst for Bitcoin, as seen in the last bull cycle when prices rose to roughly ,000.
Accordingly, the coming days will shape how Bitcoin prices evolve in the medium to long term. One key driver of crypto and BTC valuation will be fundamental events, especially pronouncements from the United States Federal Reserve (Fed). The central bank will relay its decision on interest rates on March 20. Earlier in 2022, when interest rates were hiked, prices tanked.
Bitcoin’s Climbing Value Outshines Global Silver Market in Historic Pre-Halving Surge
Bitcoin’s ascent past the ,000 mark has elevated its market capitalization beyond the combined worth of all the world’s silver. The cryptocurrency has seen a 52.7% increase in value relative to the U.S. dollar over the past month, with 41.1% of this uptick occurring within a mere two weeks. Bitcoin Retakes the 8th Largest Asset […]
Bitcoin News
Bitcoin Crosses $59,000 In Surprise Pre-Halving Rally
The Bitcoin price has now successfully crossed the ,000 level after an incredibly bullish month of February. The market leader has also barreled ahead of all expectations during this time as well, continuing to rally at a time when prices are expected to crash ahead of the next halving.
Institutional Investors Drive Bitcoin Price Higher
One of the major drivers behind the Bitcoin performance over the last day has been institutional investors. These investors have continued to take advantage of the opportunities provided by the Bitcoin Spot ETFs approved by the Securities and Exchange Commission (SEC) in January.
While there have been outflows from the Grayscale Bitcoin Trust due to concerns about high fees, the inflows have not slowed. On Tuesday, Bloomberg Analyst James Seyffart revealed that Spot ETF inflows rose once again, to cross 0 million in a single day.
In the same vein, the trading volumes have been on the rise. With demand soaring, volumes crossed billion on Tuesday and it is the second time in a month that it has crossed this figure. This rise in both inflows and trading volumes shows a willingness among institutional investors to take positions in Bitcoin.
Fidelity Investments, one of the issues of the many Spot Bitcoin ETFs available for trading in the market, also recently encouraged investors to put a small portion of their portfolios in Bitcoin. According to the asset manager, a portfolio allocation of 1-3% in Bitcoin is ideal at this point.
Now, while a 1-3% allocation may seem small to the average investor, it is quite large when it comes to institutional investing. These portfolios are often made up of billions of dollars, and even a 1-3% allocation could work out to hundreds of millions of dollars being funneled into Bitcoin.
BTC Dominance Not Budging
While the price of Bitcoin has rallied in the last week, expectations are that Bitcoin will begin to consolidate and then give way to altcoins. However, the BTC dominance over the crypto market remains quite high, suggesting that the time for altcoins may not be here yet.
Presently, the BTC dominance is sitting at 54.1% after seeing a local peak of 54.4%. This shows that Bitcoin is still leading the entire market by a large margin, and until this dominance subsides, Bitcoin will continue to lead the rally while altcoins lag behind.
For now, the bulls are focusing on maintaining support at ,000, giving it a bounce point toward ,000. With the previous all-time high at ,000, the BTC price needs a less than 20% move from here to reach a new all-time high.
Bitcoin’s Pre-Halving Jitters — Historical Trends Spotlight Potential Price Dip Ahead of 2024 Event
As the Bitcoin network nears its fourth halving event, numerous market watchers and cryptocurrency enthusiasts are curious about whether the price will experience a temporary decline before the halving occurs. Historically, bitcoin’s value has surged six to seven months ahead of halvings, yet there has consistently been a significant decrease before the subsequent increase that […]
Bitcoin News