Bitcoin faces volatility ahead of halving, sparking FUD and anticipiation.
Outflows from Bitcoin ETFs persist despite signs of slowing down.
Bitcoin, the leading cryptocurrency, finds itself in the midst of a tumultuous period as it navigates through volatile market sentiment, fueled by anticipation surrounding an upcoming event. With just two days remaining until the highly-anticipated halving, excitement and fear grip the crypto community, reflecting in a flurry of discussions and trading activity.
Over the past weekend, Bitcoin experienced a significant dip, plummeting to as low as $61.5K, while Ethereum followed suit, dropping to $2,890. This downturn sparked a wave of pessimistic sentiment among traders, leading to panic selling and exacerbating the Fear, Uncertainty, and Doubt (FUD) surrounding the market.
BTC Price Chart, Source: Santiment
Currently, Bitcoin is trading at $63,442, showing a modest surge of 0.32%. However, trading volume has seen a decline of 10.4%, indicating a cautious approach among investors.
The focus of traders has shifted towards the viability of holding Bitcoin amidst the possibility of an extended correction post-halving. As alternative coin sectors like AI, gaming, DeFi, and memecoins undergo substantial retracements, attention continues to gravitate towards Bitcoin and fiat liquidations, amplifying the prevailing FUD sentiment , reported by santiment.
Bitcoin ETF Chart, Source: IntoTheBlock
Furthermore, data from Farside Investors reveals that net outflows from spot Bitcoin ETFs persisted for the second consecutive day, amounting to $58 million on Tuesday, April 16. Despite this, outflows from the Grayscale Bitcoin ETF GBTC have shown signs of deceleration, totaling $79.4 million on April 18. The total outflows from the Grayscale BTC ETF now stand at $16.46 billion. Notably, even the Ark Invests’ ETF ARKB registered net negative outflows of $13 million on the same day.
As the countdown to the halving continues, market participants brace themselves for further fluctuations, driven by a blend of speculation, investor sentiment, and external factors. Whether Bitcoin can weather the storm and emerge stronger remains to be seen, but the anticipation surrounding the halving ensures that all eyes remain firmly fixed on the crypto market.
