Home Bitcoin News Bitcoin Faces Uncertain Future Post-Halving: Analysts Warn of Potential Declines

Bitcoin Faces Uncertain Future Post-Halving: Analysts Warn of Potential Declines


In the ever-evolving landscape of cryptocurrency, Bitcoin’s recent performance has left investors and enthusiasts on the edge of their seats. Following the much-anticipated halving event on April 19, where the reward for mining new Bitcoin blocks was slashed in half, the digital currency embarked on a rollercoaster ride that has experts and market watchers raising eyebrows.

Initially, Bitcoin surged nearly 10%, reaching an impressive $67,020 on April 24, only to witness a sharp decline in the days that followed. Now, as the dust settles, analysts are sounding the alarm, warning of potential pitfalls that lie ahead.

Renowned analyst Rekt Capital, known for his insights into market movements, recently shared his perspective on Bitcoin’s current trajectory. In a thought-provoking analysis, Rekt Capital introduced the concept of the “Post-Halving Danger Zone,” a period characterized by historical price corrections following halving events.

Drawing parallels to Bitcoin’s performance after the 2016 halving, Rekt Capital highlighted a trend where the cryptocurrency experienced significant price retracements in the weeks following the event. Back then, Bitcoin saw its price dip by 11%, signaling a turbulent phase for the digital asset.

Now, with Bitcoin’s recent price fall, Rekt Capital suggests that history may be repeating itself. If past patterns hold true, Bitcoin could be eyeing a descent towards the $60,000 mark in the coming weeks. However, Rekt Capital emphasizes that this potential downturn would likely unfold within a tight timeframe, offering investors a narrow window to navigate the market’s volatility.

As of the latest update, Bitcoin is trading around $62,672, marking a decline of 2.44% in the last day alone. This downward trend underscores the cryptocurrency’s struggles over the past month, during which it has shed over 11% of its market value.

Meanwhile, in the realm of Bitcoin Exchange-Traded Funds (ETFs), the landscape is witnessing both inflows and outflows, painting a mixed picture of investor sentiment. According to data from SoSoValue, the Bitcoin Spot ETF market recently saw net outflows amounting to $217 million on April 25.

As of the latest update, Bitcoin is trading around $62,672, reflecting a 2.44% decline in the past day alone. This downward trend underscores BTC’s lackluster performance over the past month, where it has shed 11.16% of its market value, leaving investors on edge.

In tandem with Bitcoin’s price woes, the cryptocurrency market is witnessing a shakeup in the realm of ETFs (Exchange-Traded Funds). Data from SoSoValue reveals net outflows totaling $217 million from Bitcoin Spot ETFs on April 25, with Grayscale’s GBTC leading the exodus with $138 million in outflows.

What’s particularly noteworthy is the emergence of net outflows from previously unscathed ETFs like Fidelity’s FBTC and Valkyrie’s BRRR, signaling a shift in investor sentiment. Even established players like ARK Invest’s ARKB and Bitwise’s BITB have experienced investment losses, further exacerbating the situation.

Leading the pack in outflows is Grayscale’s GBTC, with a staggering $138 million exiting the market, bringing its total outflows close to $17 billion. Notably, Fidelity’s FBTC and Valkyrie’s BRRR experienced net outflows for the first time, signaling a shift in investor behavior towards these ETFs.

However, amidst the outflows, Franklin Templeton’s EZBC bucked the trend with a net inflow of $1.87 million, showcasing pockets of optimism in an otherwise uncertain market. Overall, Bitcoin Spot ETFs currently boast a combined value of $128 billion, reflecting a remarkable growth trajectory since their trading debut earlier this year.

As the cryptocurrency landscape continues to evolve, investors are advised to tread cautiously, keeping a close eye on Bitcoin’s price movements and market trends. With volatility looming and uncertainties abound, staying informed and making well-informed decisions remain paramount in navigating the ever-changing world of digital assets.

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Pankaj K

Pankaj is a skilled engineer with a passion for cryptocurrencies and blockchain technology. With over five years of experience in digital marketing, Pankaj is also an avid investor and trader in the crypto sphere. As a devoted fan of the Klever ecosystem, he strongly advocates for its innovative solutions and user-friendly wallet, while continuing to appreciate the Cardano project. Like my work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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