In four days, the highly anticipated fourth Bitcoin halving is set to occur around April 20, 2024. The Bitcoin market has recently experienced significant downward pressure from sellers. During an interview with Bloomberg, Kris Marszalek, CEO of Crypto.com, indicated that this selling pressure could persist up until the halving takes place.
On Mondays trading session, Bitcoin’s price surged in Asian markets, reaching an astounding $67,000, fueled by the approval of Bitcoin ETFs in Hong Kong. Yet, this excitement didn’t last as rising US Treasury yields soured the market mood, causing Bitcoin to retreat to $62,500.
Marscalek suggests that some selling may occur in the near future due to buy-the-rumor, sell-the-news trading. Nevertheless, he is optimistic about the long-term effects of Bitcoin’s halving in 2024, stating that it will likely have a positive impact on Bitcoin’s price. He anticipates noticeable activity within the six months following the halving event.
The upcoming Bitcoin halving will decrease miners’ rewards by half, creating a significant hurdle for Bitcoin mining operations. It’s predicted that these miners could sell over $5 billion in Bitcoin after the fourth halving event. This is primarily to cover increased operational costs and prevent further revenue loss.
Bitcooin miners have been stockpiling large quantities of Bitcoin for several months prior to the upcoming halving. Additionally, they are making preparations to enhance their mining equipment in anticipation of the increased computational demands following the halving event.
Bitcoin Market Dominance Jumps to 55%
Inspite of the unpredictable price fluctuations, Bitcoin maintains its significant influence in the wider cryptocurrency sector. According to recent data, Bitcoin’s market dominance has reached a three-year peak of 55%. A primary cause for this growth is the substantial investments made into spot Bitcoin Exchange Traded Funds (ETFs) since their debut three months ago.
Within the past three months, US-focused spot ETFs, such as those offered by BlackRock Inc and Fidelity Investments, have amassed approximately $56 billion in assets. This impressive milestone ranks among the most successful launches for any fund category to date.
The demand for a Bitcoin ETF has not shown any significant growth over the past month, but there is still considerable activity in on-chain transactions, disregarding those made during ETF settlements.
— Ki Young Ju (@ki_young_ju) April 16, 2024
Over the past few weeks, Bitcoin ETF investments have slowed down significantly. Nevertheless, Bitcoin hoarders, or “whales,” are continuing to amass large quantities of the cryptocurrency on the blockchain.
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2024-04-16 10:24