Samson Mow, a well-known advocate for Bitcoin (BTC), has shared some possible explanations for the recent drop in cryptocurrency prices.
Over the past weekend, Mow shared on the X platform that many investors decreased their cryptocurrency holdings out of worry for potential conflict in the Middle East. Notably, among all assets, Bitcoin was the one that continued to be traded worldwide during the weekend.
Samson Mow Identifies Reasons for Bitcoin Price Slump
Along with his other points, Mow highlighted that many people in the Bitcoin market don’t fully grasp the potential consequences of the upcoming halving. Those who do understand may be uncertain about how it will influence Bitcoin’s price.
Generally speaking, the Bitcoin halving has implications for both the cryptocurrency and miners. When the block reward is reduced, miners’ incentives also decrease, which could impact the network’s security and hash rate. This situation raises questions about the sustainability of mining operations from an investor’s perspective.
On weekends, the anxiety about potential war causes increased caution in traditional financial markets, leading Bitcoin to be the only globally active asset affected. Traditional finance sectors experienced palpable apprehension today. This response is excessive and will pass shortly, making way for a calm market phase known as “Omega time.”
— Samson Mow (@Excellion) April 16, 2024
According to Mow’s perspective, investors have taken a cautious stance and are holding back on investments until they have a better understanding of the market trends after the halving event. This hesitancy has contributed to the recent downturn in the market.
Although there are valid apprehensions, Mow pointed out that the Bitcoin halving would lead to a significant reduction in supply within the market. He explained that investors are keeping a close eye on the influx and demand for the newly launched US Bitcoin Spot Exchange-Traded Fund (ETF), which could impact Bitcoin’s pricing as a result of the halving event.
An intriguing development mentioned by Mow that could impact Bitcoin’s price is the anticipated debut of a Hong Kong-based spot Bitcoin ETF. Previous news from Coinspeaker indicated that the Hong Kong Securities and Exchange Commission gave its approval for the first such ETF on April 15. In simpler terms, Mow believes that investors continue to buy Bitcoin are the bold leaders in this market.
BTC Price Movement
On Monday, the price of Bitcoin reached an astounding $67,000 during Asian trading due to the approval of Bitcoin spot ETFs in Hong Kong. Yet, this excitement didn’t last long as increasing US Treasury yields affected investor attitudes, causing Bitcoin to drop back down to $62,500.
At present, Bitcoin is going through setbacks and is priced at $63,282, which is a 4.49% drop in value over the past 24 hours. The trading volume has increased by a modest 1.2% to reach $43.97 billion. The outlook for Bitcoin’s price as forecasted is negative, with the Fear & Greed Index registering a reading of 65 (indicating Greed).
Kris Marszalek, the CEO of Crypto.com, remains optimistic about Bitcoin’s future. Despite his belief that Bitcoin’s price may drop further before the upcoming halving event, he is convinced that this event could lead to a significant price increase for Bitcoin.
According to Marszalek, we can anticipate some significant activity related to Bitcoin within the next six months after the halving event.
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2024-04-16 13:35