Cryptocurrencies are on the verge of severe turbulence in the second half of April, caused by the Bitcoin halving
This month's Bitcoin halving, coupled with ETFs and promises from the Federal Reserve to cut rates, will “add fuel to the raging crypto asset sell-off” and keep the crypto market pumped up for weeks.
The Bitcoin halving will cause prices to rise in the medium term, but cryptocurrency prices immediately before and after could be negative.
The belief that the halving will have a positive impact on cryptocurrency prices is well-entrenched. When the majority of market participants agree on a certain outcome, the opposite usually happens. The halving is also thought to be timed at a time when dollar liquidity is lower than usual, so Federal Reserve policy influences markets.
Can the market ignore bearish sentiment and continue to rise? Of course it can!
A volatile period is approaching for risk assets as US tax payments tighten liquidity, the Fed begins quantitative tightening, shrinking the money supply, and the Treasury's general account, basically the government's current account, has yet to be built.
On May 1, after the Fed meeting is expected to slow the pace of money supply contraction, the Treasury will inject from the TGA “likely an additional $1 trillion in liquidity into the system, which will pump up the markets, which may be the reason it is best to hold off on trading until May.
Year to date, BTC is up more than 61%, rising from around $42,200 to $71,170.
The market sentiment index, which measures the crypto index of fear and greed, also increased during this time, remaining at the “Greed” mark - 76 points out of a possible 100.
I want to share my thoughts and experience with you. Sometimes, in order to avoid big losses, you have to sacrifice small profits. This can be difficult, especially when the market offers opportunities to make money. However, if you can control your emotions and make informed decisions, you can maintain your portfolio and lifestyle without significant losses.
Remember that the main thing is stability and long-term success, and not the pursuit of short-term profit. Use your strategy and knowledge to manage risk and keep your portfolio safe.
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