The price of Bitcoin immediately fell below the $60,000 mark as the halving approached.
According to data from CoinMarketCap, the price of Bitcoin (BTC) has fallen by more than 3% in the last 24 hours and was trading at $59,800 at the time of writing. Cryptocurrency trading volume fell by almost 12% to $40 billion.
Source: CoinMarketCap
CoinGlass data shows that traders are actively liquidating positions. In the last four hours, traders dumped over $115 million worth of assets, of which $96.70 million were long positions and the rest were short positions. The majority of liquidations took place on crypto exchange OKX, totaling $43.81 million.
Source: Coinglass
In a few days, the upcoming BTC halving will occur, with traders potentially exiting their positions due to the seismic event. The halving will reduce miners' rewards by 50% and stifle the number of coins uploaded to the market – a feature that some Bitcoin supporters consider optimistic.
In the run-up to the halving, there was increased volatility of the coin, and not just because of the halving. The selloff also comes as investors continue to withdraw funds from popular Bitcoin ETFs after Federal Reserve Chairman Jerome Powell said the central bank needs to see further progress on the inflation front before cutting interest rates.
Markus Thielen, head of research at 10x Research, points out that crypto miners began accumulating Bitcoins in January 2024 to increase the imbalance between supply and demand. As a result, the price of BTC rose sharply and reached its historical maximum in March.
On the other hand, after the halving, digital asset mining companies will gradually eliminate the accumulated coins, putting pressure on the price of cryptocurrencies.
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