As the Bitcoin halving draws closer, the ETF recorded a 4th consecutive day of outflow streak, with $165 million recorded.
The outflow follows Bitcoin’s current bearish trend, which has declined over 13% in the last week, due to ongoing selling pressure as Bitcoin trades at the $62k price as of the time of writing this report.
As the Bitcoin halving approaches, Grayscale’s GBTC holdings have dropped by 50%, ahead of the anticipated Bitcoin halving event, contrasting with BlackRock’s IBIT, which saw a remarkable 10,000% increase.
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Despite Bitcoin’s current 52% market dominance, the broader economic concerns and high-interest rate expectations are putting downward pressure on cryptocurrency values. Also, Bitcoin’s 9% drop in price coincides with the dollar’s significant rise.
Although recent market conditions and predictions point to short-term volatility, historical trends suggest Bitcoin could experience considerable gains in the year after the halving, reinforcing optimistic long-term forecasts.
Analysts predict that a definitive move above $62,215 may signal bullish potential, but slipping below could intensify selling pressures, hinting at deeper corrections.
The current market cycle is the first time Bitcoin has hit an all-time high before halving. BTC hit its current $73,679 peak on March 13, and it has since corrected 16% to a low of $62,180, as of the time of writing this report.
Industry executives are pessimistic in the short term. 10x Research head of research Markus Thielen predicted on April 13 that there could be a $5-billion miner sell-off after the halving, putting downward pressure on markets.
Meanwhile, Marathon CEO Fred Thiel said that the halving rally was already factored in, bringing forward what would have been a post-halving rally. Also, fellow analyst Cold Blooded Shiller noted that 30% corrections were not uncommon, hinting that BTC could potentially fall to around $51,000. Meanwhile, historical patterns suggest substantial gains for Bitcoin one year post-halving.
On whether the halving event will impact Altcoins, based on the price history of altcoins during the past halvings and similar economic events in 2024, a price surge can also be anticipated in the case of altcoins.
The financial factors for 2024 include Ethereum ETF, US inflations, and improved crypto regulations are predicted to play a significant role in supporting the post-halving bull run. It also needs to be noted that many other factors can impact the altcoin prices. As a result, the timing of this bull run can vary from the previous ones.
Even from the history charts, no post-halving bull zone happened immediately after Bitcoin halving. It has to see how long the altcoin investors will have to HODL to see the desired market.
LinkedIn Summary:
Bitcoin’s highly-anticipated halving event over the coming days will be closely monitored by the crypto industry. The “halving,” which occurs roughly every four years, cuts the supply of bitcoin in half, and traders expect it to drive prices higher over time. This year’s halving comes as the price of Bitcoin soared to $73,000 in March, thanks to the approval of exchange-traded funds or ETFs tied to the cryptocurrency. Since the halving also slashes profits for miners, those companies are trying to sell their technology to artificial intelligence companies to diversify their revenue streams and cut costs.
- 2Other mining companies are looking at making takeover deals for smaller rivals and buying older computers for cheaper, per WSJ.
- “This bitcoin bull cycle… might well be shorter and more explosive, culminating in a peak in late 2024 or early 2025,” per one industry watcher.