Bitcoin’s Fate Hangs in the Balance as Halving Approaches
Bitcoin’s Future Uncertain as Halving Approaches
As the highly anticipated Bitcoin halving event approaches, the cryptocurrency market is on edge, waiting to see which way the digital asset will break. With Bitcoin repeatedly testing support near the $62,000 level, investors are wondering if the leading cryptocurrency will enter the halving with a bang or a whimper.
Data from TradingView shows that Bitcoin fell to the $61,700 area multiple times on Tuesday, with the support level holding so far. However, concerns arise as BTC continues to make lower highs throughout the trading session.
At the time of writing, Bitcoin is trading at $62,747.75, down 1.10% on the 24-hour chart. Meanwhile, equity markets managed to stabilize after recent losses, with the S&P and Nasdaq finishing marginally lower, while the Dow eked out a small gain.
A new report from crypto exchange Bybit suggests that the recent introduction of U.S. spot Bitcoin ETFs could lead to a significant supply crunch in the market. The report predicts that all Bitcoin reserves on exchanges could be depleted by January 2025, with the increasing demand from traditional finance giants and capital-rich investors.
The analysts at Bybit also point out that miners are selling off their reserves at a faster rate than before the 2020 halving, potentially exacerbating the supply crunch post-halving. They advise investors to take profits by the end of 2024, as the supply squeeze is expected to worsen post-halving.
In the altcoin market, most of the top 100 coins declined in value on Tuesday, following Bitcoin’s downward trend. Celestia (TIA) led the gainers, while Pendle (PENDLE) was the biggest loser.
Overall, the cryptocurrency market cap now stands at $2.29 trillion, with Bitcoin’s dominance rate at 53.88%. As the halving event draws near, all eyes are on Bitcoin to see how it will navigate the challenges ahead.
