Bitcoin’s price surge to $71,000 could indicate the end of its decline before the upcoming halving event, as large investors accumulate over 52,000 BTC.
The impending Bitcoin halving is expected to have a significant impact, potentially following trends seen in previous cycles.
Recent data from cryptocurrency research organization Kaiko reveals that Bitcoin closed last week at a low of $67,000, while GBTC outflows increased. Meanwhile, notable events occurred in the industry, including Blackrock launching its first tokenized fund on Ethereum, Genesis settling with the SEC for $21 million, and the Ethereum Foundation facing a regulatory investigation.
Analyzing Market Movements Ahead of the Halving
A CNF YouTube video highlights the growing interest in the upcoming Bitcoin halving, projected to take place around April 19. Market experts speculate that large investors, known as “sharks” and “whales,” are likely to continue expanding their holdings, which could positively impact the overall crypto market. Although there were concerns about a significant pre-halving decline, similar to previous cycles, the actual decrease was less severe than expected.
On March 25, Bitcoin experienced a notable surge to $71,000, potentially indicating the end of its pre-halving correction. Blockchain analytics firm Santiment reported that key players accumulated 51,959 BTC, worth approximately $3.4 billion. This accumulation represents 0.263% of Bitcoin’s circulating supply and occurred unexpectedly on March 24, catching traders off guard.
A prominent Crypto Analyst tweeted that if this marks the end of the pre-halving retracement period, Bitcoin’s current performance closely resembles the pre-halving scenario in 2020. In that cycle, Bitcoin experienced an 18% pullback, closely aligning with the slightly over 19% retracement observed in 2020. This comparison suggests that the current cycle is following similar trends to the previous halving cycle.
Despite a significant dip of around 17% from its peak on March 14, Bitcoin’s retracement was less severe than the over 19% retracement observed in 2020. Technical analysts, including Rekt Capital, suggest that this may signal the end of the pre-halving decline. Kaiko’s research highlights increased selling pressure after the closure of the US market on March 25, emphasizing the fragmented nature of cryptocurrency market liquidity. At the time of writing, Bitcoin is up 5.2% at $70,252, with an intraday high of $71,000.
Preparing for the Halving
CNF previously discussed the significance of the upcoming Bitcoin halving, scheduled for mid-April 2024. This event will reduce the block reward from 6.25 BTC to 3.125 BTC per block, potentially reshaping market dynamics.
In the last 24 hours, Bitcoin has been trading at $70,670, with a 5.59% increase and a 9.75% rise over the past week, indicating a strong upward momentum.
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