BTC Price Is Falling: Is It The End of Bull Run?

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BTC Price Is Falling: Is It The End of Bull Run? – Crypto News

Published

1 year ago

April 2, 2024

Dripp

BTC price has dropped to $65,228.72 after facing a dip of 7% from yesterday. Earlier, Bitcoin was trading around the $70K mark but has failed to maintain that with the beginning of the new month. The market capitalization of Bitcoin is also down, currently settling around $1,282,145,774,151.

The effect of BTC fall is also visible in the rest of the crypto market. Ethereum has fallen from the $3500 mark, and a 7% fall in the overall crypto market cap is also visible. Not only this, the fear and greed index has also shifted from extreme greed zone to simply greed.

Why Bitcoin price has dropped? Is it the end of the bull run? Let’s discuss all this through this blog.

Why has the Bitcoin Price fallen recently?

Bitcoin is the most important cryptocurrency in the market, and no minor disturbances can affect the prices. Three prominent reasons have pushed Bitcoin prices to fall, affecting the overall crypto market.

Upcoming Bitcoin Halving

As the Bitcoin halving event is approaching, increased selling pressure is visible in the market, which has pushed the value from its previous $70k mark to the $65K

Such price differences are always noticed and considered a part of the pre-halving events. During halving, the Bitcoin reward will be slashed in half and the miners will receive a lower share for the mining efforts. The sole purpose of the halving is to reduce Bitcoin production to maintain the scarcity of tokens, which will result in a price surge later in the future.

LMAX Digital has also spoken on this topic, mentioning: –

As we come into this halving event, bitcoin has just put in a fresh record high and could be less inclined to be wanting to extend its record run before first going through an overdue period of correction and consolidation

Bitcoin ETF Negative Flow

The second quarter of 2024 has started with the all Bitcoin Spot ETF turning negative. A total of $85.84 million in the net ETF outflow has been noticed on the 1st of April. The Grayscale ETF alone has faced $302 million in outflows.

Though the Bitcoin price has already started moving in a downtrend, the ETF data has become another factor pushing the value even lower.

Coinbase Bitcoin Outflow

CryptoQuant market data has pinpointed a huge outflow on the Coinbase exchange earlier. The outflow was led by a transaction of 16,800 BTC, with another 17,000 BTC shared out of the exchange.

Usually, such transactions lead to bullish conditions, but that did not happen in this case. Instead of a bullish push, these transactions helped to bring the BTC value down by initiating a selling trend.

Is The Bull Run Over?

Bitcoin is entering the halving event for the fourth time this year, and a bull run is anticipated to follow the halving event. BTC has been performing well in the last three months, creating a new ATH record, and was trading around $70K just two days ago. It is the pre-halving moment where Bitcoin is under a correction zone before jumping a bull run.

The same has happened in the past three halving events, each leading to a long bull run. During the first halving, the BTC price was just around $12.20, but that surged to above $1000 after halving. Similarly, in the second halving event, Bitcoin was around $650.3, but after that, the price went to $19,188. Lastly, during the last halving experience, the BTC surged to its previous ATH of $69K.

Analysts believe after this halving event, BTC price will start with an initial value of $80,000 before crossing the $100K mark if everything goes according to expectations.

Conclusion

A price decline has always happened during the halving waiting period. But once the Bitcoin halving comes to an end, the BTC price has always led to a long bull run. It has to see how Bitcoin will dominate the crypto market once it is all over.