Bitcoin’s surge to $71,000 could indicate the end of its pre-halving decline, as major investors accumulate over 52,000 BTC.
The upcoming Bitcoin halving, expected around April 19, is predicted to have a significant impact on the market, following patterns seen in previous cycles. Recent data from cryptocurrency research organization Kaiko reveals that Bitcoin closed last week at a low of $67,000, coinciding with an increase in GBTC outflows. Additionally, notable industry developments include Blackrock launching its first tokenized fund on Ethereum, Genesis settling with the SEC for $21 million, and the Ethereum Foundation facing a regulatory investigation.
A CNF YouTube video highlights the growing anticipation surrounding the upcoming Bitcoin halving. Market experts speculate that large-scale investors, known as “sharks” and “whales,” will continue to expand their holdings, positively affecting the overall crypto market. While there were concerns about a significant pre-halving decline, similar to past cycles, the actual decrease was less severe than expected.
On March 25, Bitcoin experienced a significant surge to $71,000, potentially signaling the end of its pre-halving correction. Blockchain analytics firm Santiment reported that key players accumulated 51,959 BTC, valued at approximately $3.4 billion. This accumulation represents 0.263% of Bitcoin’s total supply and occurred unexpectedly on March 24, surprising traders.
Prominent Crypto Analyst Rekt Capital noted in a recent tweet that if this marks the end of the pre-halving retracement period, Bitcoin’s current performance closely resembles the 2020 pre-halving scenario. In both cycles, Bitcoin experienced a pullback of around 18% and slightly over 19% retracement, respectively. This comparison suggests that the current cycle is following similar trends to the previous halving cycle.
Despite a significant dip of around 17% from its peak on March 14, Bitcoin’s retracement was less severe than the over 19% observed in 2020. Technical analysts, including Rekt Capital, suggest that this may indicate the conclusion of the pre-halving retraction. Kaiko’s research also highlights increased selling pressure after the closure of the US market on March 25, underscoring the fragmented nature of cryptocurrency market liquidity. At the time of this report, Bitcoin is up 5.2% at $70,252, with an intraday high of $71,000.
Looking ahead, the upcoming Bitcoin halving, scheduled for mid-April 2024, holds significant importance. This event will reduce the block reward from 6.25 BTC to 3.125 BTC per block and potentially reshape market dynamics. Currently, Bitcoin is trading at $70,670, with a 5.59% increase in the past 24 hours and a 9.75% rise over the past week, indicating strong upward momentum.