Bitcoin Traders Prioritize Broader Risks Over ‘Halving’

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Bitcoin traders are now focusing more on geopolitical events to predict Bitcoin’s price direction rather than the halving event itself. As reported by Reuters, industry experts stated on Monday that Bitcoin’s price movements are primarily driven by broader financial market sentiments and geopolitical factors. However, the halving event of Bitcoin has yet to significantly impact its price.

Geopolitical Issues to be on Crypto Traders List

Every four years, the creation rate of new bitcoins is decreased through a process called “halving” to maintain equilibrium between supply and demand in the Bitcoin market. Typically, this event leads to an increase in Bitcoin prices. Nevertheless, the current situation is exceptional as geopolitical factors carry more weight than the usual price surge following the halving.

Bitcoin Traders Gauge Withdrawals

Last week, a total of $226 million was taken out from Bitcoin and Ethereum. Most of this amount, around $192 million, came from Bitcoin. Ethereum experienced withdrawals of approximately $34 million for the sixth consecutive week. Surprisingly, even short positions in Bitcoin were liquidated, resulting in a minor withdrawal of $0.3 million.

Despite the mass exodus of funds, there was a glimmer of optimism as attitudes towards multi-asset investments slightly brightened, leading to an inflow of $9 million. Furthermore, some alternative coins like Chainlink and Litecoin bucked the trend and brought in additional investments of $1.7 million and $3.2 million respectively.

Bitcoin Traders Cautious of Bitcoin ETF Outflows

Last week, Bitcoin ETF investments saw a withdrawal of approximately $165 million, matching a decrease in purchasing behavior noticeable during the US tax submission period. Despite this drop-off, nine ETFs reported significant trading volumes of around $2.7 billion on Wednesday, suggesting continuous engagement and investment in the market.

The current price of Bitcoin is at $65,899.96, and it has a substantial trading volume of $20.7 billion over the past 24 hours. This figure represents a 1.38% price increase in just one day. These statistics underscore Bitcoin’s dominance within the cryptocurrency sector, with its market capitalization remaining strong at an impressive value of $1.2 trillion.

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2024-04-23 00:57