BTC price has been trending downward, falling from a high of $71,000 to the current low of $65,000.
BTC price is down 7% from yesterday and has now fallen to $65,228.72. Earlier, Bitcoin was trading around $70,000 but failed to maintain that level at the beginning of the new month. Bitcoin's market capitalization has also fallen and is currently stable at around $1,282,145,774,151.
The impact of Bitcoin’s decline is also evident in other areas of the cryptocurrency market. Ethereum has retreated from the $3,500 mark, and the overall cryptocurrency market capitalization has also fallen by 7%. Not only that, the Fear and Greed Index has also shifted from the Extreme Greed zone to Pure Greed.
Why is the Bitcoin price falling? Is this the end of the bull run? Let’s discuss it all through this blog.
Why has the price of Bitcoin dropped recently?
Bitcoin is the most important cryptocurrency in the market and any minor disturbance will not affect the price. Three prominent reasons pushed the price of Bitcoin down, affecting the entire cryptocurrency market.
The upcoming Bitcoin halving
As the Bitcoin halving event approaches, there is a noticeable increase in selling pressure in the market, causing the value of Bitcoin to rise to $65,000 from the previous $70,000 mark.
This price difference is always noticed and considered as part of the pre-halving event. During the halving, the Bitcoin reward will be reduced by half, and the share of mining received by miners will also be reduced. The sole purpose of the halving is to reduce the production of Bitcoin to maintain the scarcity of the coin, which will lead to a surge in price in the future.
LMAX Digital also touched on this topic, mentioning: –
As we head into this halving event, Bitcoin has just hit new all-time highs and may be reluctant to extend its record-setting run before first experiencing a belated correction and consolidation period.
Bitcoin ETF Negative Flow
All Bitcoin spot ETFs turned negative at the start of the second quarter of 2024. On April 1, ETF net outflows totaled $85.84 million. The Grayscale ETF alone faced $302 million in outflows.
Although Bitcoin prices have already started to fall, ETF data has become another factor pushing Bitcoin prices lower.
Coinbase Bitcoin Outflows
CryptoQuant market data had earlier pointed out a massive outflow from the Coinbase exchange. The outflow was dominated by 16,800 BTC traded, with another 17,000 BTC being shared out of the exchange.
Normally, such transactions would lead to bullish conditions, but that did not happen in this case. Instead of driving bullishness, these transactions triggered a selling trend that led to a drop in the value of Bitcoin.
Is the bull past it?
Bitcoin is entering its fourth halving event this year, and a bull run is expected after the halving event. BTC has performed well in the past three months, setting a new ATH record and trading around $70,000 two days ago. This is the moment before the halving, and Bitcoin is in correction territory before the bull run.
The same thing happened with the past three halving events, each of which led to a long bull run. During the first halving, the BTC price was only around $12.20, but it surged to over $1,000 after the halving. Similarly, during the second halving event, the Bitcoin price was around $650.3, but the price rose to $19,188 afterwards. Finally, during the last halving, BTC surged to $69,000 before that.
Analysts believe that after this halving event, if everything goes as expected, the BTC price will start from an initial value of $80,000 and then break through the $100,000 mark.
in conclusion
Price drops always happen during the halving wait. But once the Bitcoin halving is over, BTC price always leads to a long-term bull run. It will have to see how Bitcoin will dominate the cryptocurrency market once everything is over.
