The CEO of Crypto.com predicted that half of Bitcoin will be a buy-the-rumor, sell-the-news kind of occurrence. Price volatility may result in the short term, but overall benefits would accrue over time.
The eagerly awaited fourth Bitcoin halving event, which is set for April 20, 2024, is only four days away, and the price of bitcoin is already under significant selling pressure. Chief Executive Officer of Crypto.com Kris Marszalek stated in a Bloomberg interview that selling pressure on the price of Bitcoin could last until the halving.
The introduction of spot Bitcoin ETFs in Hong Kong on Monday gave the price of bitcoin a significant boost during Asian trading hours, reaching a high of $67,000. But, this excitement was short-lived as the market's sentiment was soured by rising US Treasury yields, which caused Bitcoin to drop all the way to $62,500.
Marscalek said that buy-the-rumor, sell-the-news trade might lead to some selling in the near future. But he went on to say that in the long run, the 2024 Bitcoin halving will benefit the price of BTC overall. After the Bitcoin halving, Marszalek stated, "I anticipate pretty decent action within the next six months."
Miners will encounter a significant obstacle when the forthcoming Bitcoin halving event occurs, which will cut the mining profits in half. Estimates suggest that after the fourth Bitcoin halving, miners may dump up to $5 billion worth of Bitcoin. Essentially, this would be done to guard against more revenue declines and entice increased operating costs.
Bitcoin miners have been steadily accumulating BTC months in advance of the halving of the cryptocurrency. To meet the increased computing demands following the halving event, they are also preparing to modernize their equipment.
Market Dominance of Bitcoin Increases to 55%
Despite this extreme price fluctuation, Bitcoin's influence in the larger cryptocurrency market is still growing. According to the most recent study, 55% of the market is now owned by Bitcoin, which is a three-year high. The significant inflows into the spot Bitcoin ETFs throughout the last three months after introduction have been a major contributing factor to this.
Since their inception three months ago, US spot ETFs—including those from BlackRock Inc. and Fidelity Investments—have amassed assets totaling around $56 billion. This accomplishment represents one of the fund category's most prosperous launches to date.
But in recent weeks, the inflows into the Bitcoin ETF have slowed down and are still modest for the time being. Despite this, Bitcoin whales' on-chain accumulation is still very substantial.
April 2024, Cryptoniteuae