Home Business News Crypto market enters the halving day with a poor performance with weak sentiment

Crypto market enters the halving day with a poor performance with weak sentiment

19th Apr 24 11:30 am

The crypto market returns to the declines today after yesterday’s recovery, while Bitcoin had touched temporarily their lowest level in a month and a half when it reached 59,573 dollars earlier this morning.

This is the weak performance of the crypto market today with the approaching of the halving event of Bitcoin late this evening.

Historically, halving was bullish factor for bitcoin in the long run, but that was not necessarily in the short term. While the harsh losses suffered by buyers may be enough to temporarily keep them away from the scene, after liquidating more than $ 2.3 billion of long positions of crypto futures from Friday until yesterday, according to CoinGlass.

Bitcoin has already enjoyed about 200% from last September until mid -March, when he exceeded $ 73,000 for the first time. Therefore, bulls will need more incentives to enter again and it is not surprising to see more negative atmosphere in the market in the coming days.

If we go back to start of this April, we have witnessed the halving event for Bitcoin Cash (BCH), the bitcoin hardfork, which has enjoyed 20% since the third of April and reached a level of $ 720 before it declined and lost 38% of this peak to the level of $ 480.

In the coming days, the most important thing that the markets will search for, as usual, is more flows towards the spot bitcoin ETFs, which recorded net outflows throughout the previous five sessions, while the net assets of the ETFs are near the lowest levels in a month.

The risk appetite in the crypto market is also affected by the developments of the macro economy and constantly escalating geopolitical tensions. As negative sentiment increases around the path of the interest rate in the United States, with hope gradually, the possibility of cutting rates during the second half, with the acceleration of inflation. Moreover, the atmosphere of the regional war in the Middle East and the concerns about the possibility of the conflict in control.

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