In April 2024, the behavior of investors in the digital asset market was mainly driven by two emotions: expectations for Bitcoin’s upcoming fourth halving and concerns about the weak price performance it may cause. Historical data shows that although halving is usually regarded as a long-term positive factor, in the short term, such events often cause panic selling in the market.

Past experience shows that Bitcoin halving events such as 2016 and 2020, although they may push up prices in the long term, often trigger short-term market adjustments in the early stages. This year, general economic uncertainty and geopolitical tensions have heightened the market’s reaction to this event, causing Bitcoin’s price to drop by 16.09% in the weeks following the halving.

Meanwhile, Ethereum has also seen significant price volatility, falling by 17.80%, driven in part by continued uncertainty in the U.S. market. In addition, expectations regarding the approval of the Ethereum ETF and community debate on staking policy changes also affected market sentiment.

These phenomena reflect the market's high sensitivity to major events, and investors tend to take profits before these events occur, leading to short-term selling pressure. In this edition of Financial Bridge, we also explore the ongoing impact on U.S. markets and how spot ETFs supported higher trading volumes in April despite the overall market correction. Additionally, we discuss some of the latest factors that may impact Ethereum’s monetary properties and its technological suitability for the DeFi industry.