Bitcoin’s rally to $71,000 could signal the end of its pre-halving decline, as large investors accumulate over 52,000 BTC.
The upcoming Bitcoin halving is expected to have a significant impact, similar to previous cycles.
New data from Kaiko, a well-known cryptocurrency research organization, reveals that Bitcoin closed last week at a low of $67,000 amid an increase in GBTC outflows. Meanwhile, several noteworthy events took place in the industry, including Blackrock launching its first tokenized fund on Ethereum, Genesis settling with the SEC for $21 million, and the Ethereum Foundation facing a regulatory investigation.
Anticipation for the halving: Analyzing market movements
A CNF YouTube video highlights the growing interest in the upcoming Bitcoin halving, projected to occur around April 19. Market experts speculate that large-scale investors, known as “sharks” and “whales,” are likely to continue expanding their holdings, which could have a positive impact on the overall crypto market. While there were concerns about a significant pre-halving decline, similar to previous cycles, the actual decrease was more moderate than expected.
On March 25, Bitcoin experienced a significant surge to $71,000, potentially marking 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 circulating supply and occurred unexpectedly on March 24, catching traders off guard.
In a recent tweet, a prominent crypto analyst noted that if this marks the end of the pre-halving retracement period, Bitcoin’s current performance closely resembles the 2020 pre-halving scenario. In that cycle, Bitcoin experienced an 18% pullback, which closely aligns with the slightly over 19% retracement observed in 2020. This comparison suggests that the current cycle is following the trends observed in the previous halving cycle.
Despite a significant dip of around 17% from its peak on March 14, Bitcoin’s retracement was lower than the over 19% observed in 2020. Technical analysts, including Rekt Capital, suggest that this may indicate the conclusion of the pre-halving retracement. Kaiko’s research highlights increased selling pressure after the U.S. market closed on March 25, underscoring the fragmented nature of cryptocurrency market liquidity. As of the time of this report, Bitcoin is up 5.2% at $70,252, with an intraday high of $71,000.
Looking ahead: Preparing for the halving
CNF previously discussed the significance of the upcoming Bitcoin halving, scheduled for mid-April 2024. This pivotal event will reduce the block reward from 6.25 BTC to 3.125 BTC per block, potentially reshaping market dynamics.
In the past day, Bitcoin has been 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.
