Bitcoin Halving Day Arrives: What to Expect Next in the Crypto Market
Halving day has finally arrived for the crypto community, marking the fourth quadrennial reduction in new BTC supply. The highly anticipated event is expected to occur around 9:30 pm EST, according to data provided by Crypto.com.
Leading up to the halving, the crypto market has been experiencing volatility amidst rampant inflation, rising geopolitical tensions, and a struggling global economy. Bitcoin (BTC) recently saw a flash crash to $59,590 following Israel’s attack on Iran, but quickly bounced back to trade around $64,300.
In contrast, traditional markets have been facing challenges, with a sell-off in Big Tech stocks leading to negative closes for the S&P and Nasdaq, while the Dow managed to gain slightly. The Federal Reserve’s mixed messaging on interest rates has also contributed to market uncertainty.
Looking beyond the halving, analysts at Ryze Labs noted that Bitcoin’s recent price movements have not yet solidified its status as a ‘safe-haven’ asset among institutional investors. Funding rates for major cryptocurrencies have turned negative, reflecting a bearish sentiment in the market.
As the halving approaches, experts are divided on its impact on Bitcoin’s price. Some believe it could lead to short-term volatility followed by price increases, while others see it as a ‘sell the news’ event. Regardless, many are optimistic about Bitcoin’s long-term prospects, with potential price peaks exceeding $150,000 in the coming years.
In the altcoin market, Saga (SAGA) led the winners with a 24.5% gain, while Ribbon Finance (RBN) saw a decline of 13.2%. Overall, the cryptocurrency market cap now stands at $2.34 trillion, with Bitcoin’s dominance rate at 54.1%.
While the halving may bring short-term uncertainty, many in the crypto community remain hopeful for a bullish future as the industry continues to evolve and adapt to changing market conditions.
