The Bitcoin halving triggered a first surge in prices for most cryptocurrencies due to increased buying from institutional investors. However, prior to the event, there were redemptions resulting in significant sell-offs, causing widespread liquidations. Negative economic and political conditions dampened investor confidence during this period.
Following the halving event, most cryptocurrencies shifted from red to green on the charts, leading some to ponder if this significant change could trigger the next bull market. The price of Bitcoin, which had dipped below $63,000 due to extensive sell-offs, has since rebounded and is now above $66,500.
The Bitcoin halving is viewed as a positive development for the cryptocurrency, believed to bring renewed enthusiasm in the investment community.
Institutional Investors’ Highs and Lows
Starting off in the 2022 cryptocurrency downturn, Bitcoin’s price dipped below $20,000. However, as we move into 2023, its value has been gaining strength. This resurgence can be attributed to several factors, including:
In December, Bitcoin reached an all-time high of $44,000 as optimistic investors looked ahead with anticipation following regulatory approvals. On January 11th, the Securities and Exchange Commission gave its approval for spot Bitcoin Exchange-Traded Funds (ETFs). This decision triggered a significant influx of institutional investments into the asset. Bitcoin’s price peaked at an astounding $72,000, setting a new record high. However, the interest in the digital currency waned afterwards.
In the weeks before Bitcoin’s halving event, there was a trend among miners and traders to adjust their holdings. This resulted in a drop in Bitcoin’s price. Some miners aimed to increase their mining capabilities by hedging their reserves, while others chose to sell their Bitcoins, gained from the significant price rise over the past year.
Users Suggest a Rebound
For the past two weeks, there have been net withdrawals from crypto investment offerings. Last week alone, investors took out approximately $206 million, and trading activity also decreased.
The Bitcoin network experienced withdrawals amounting to $192 million, causing monthly inputs to decrease to $368 million, resulting in a market capitalization of approximately $69.4 billion. Similar to the ETF approvals, the Bitcoin halving has attracted investors, as evidenced by slight increases in cryptocurrency values. Even memecoins have experienced a recovery over the past 48 hours.
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2024-04-24 00:59