What is #Halving
Newsworthy Update
In the last 2 days, Bitcoin (BTC) witnessed a 13% decline from its recent record high of $73,835, temporarily dipping close to $60,000. This market correction was sparked by heightened conditions, termed a "pre-halving retrace" by analysts in anticipation of the impending Bitcoin halving event around a month away.
Analyzing the data, Crypto_Killer's report indicates that despite this dip, the ongoing Bitcoin bull market remains active. The influx of new investors is still notably low, with key price valuation metrics indicating room for growth compared to previous market peaks.
The report suggests that 48% of Bitcoin investments come from short-term holders, indicating that the bull cycle may not have peaked yet. Typically, a bull cycle ends with a higher percentage of investment from new entrants, usually between 84%-92%.
Furthermore, the analytics firm's P&L Index, comprising on-chain indicators to gauge Bitcoin profitability, suggests that the market is not at its pinnacle. Drawing parallels to corrections in mid-2019, this metric indicates potential opportunities for traders to monitor meticulously.
Looking ahead, and aside from the aforementioned indicators, the forthcoming Bitcoin halving event is poised to play a crucial role in propelling BTC's value upwards. With less than 31 days remaining until the event on April 20, where block rewards will halve to 3.125 BTC, historical trends suggest that such events lead to significant price growth.
Noteworthy institutions like Standard Chartered Bank have upped their Bitcoin price forecast from $100,000 to $150,000 by 2024, emphasizing a bullish outlook for the cryptocurrency.