Dump before virtual currency halving | Bankless

Life support prices. Bitcoin rose to $64,500 overnight, hit new highs, and fell in line with the TradFi market throughout Wednesday morning, breaking through Saturday's local lows. When will the bleeding stop?

Starting from Monday’s high, last week’s decline has sucked out $6.6 billion (19%) of open interest (mostly long-end) in BTC futures, allowing BTC funding rates to fall into negative territory for the first time in 2024. .

While the crypto market has definitely been healthy from a leverage perspective this week, the broader risk market has been riding a huge wave of bullish momentum since October, and this force is now favoring the bears. It seems so. The failure to break out last week and the current decline indicates that the distribution range marking the top may have already formed.

120 SOL was unthinkable in April when the token was trading at $120, but the sudden bearish change in momentum signals that the crypto market may have entered a downtrend phase. Suggests. Bitcoin’s next major support level is set at around $50,000, with the crypto major likely to trade 20% lower within nanoseconds, wreaking havoc on broader alt currencies there is a possibility.

If BTC falls further, the token would be down about 30% from its all-time high. Continuation above this level indicates that the economic downturn is more severe than a standard bull market correction. We find that cryptocurrencies rely heavily on narratives to drive price movements, and although the impact was positive throughout 2023 and into early 2024, there are early signs of depletion.

Bitcoin's halving, scheduled for April 20th, has been cited by many bulls as a catalyst that will positively impact prices, but the magnitude of the drop in miner supply may be less impactful than in the past. It is important to remember that as the value of BTC decreases, the value of BTC decreases. is currently not enjoying post-COVID-19 liquidity flows like the previous halving.

Additionally, while markets and traders were initially optimistic about the prospects for Spot ETH ETF approval, the SEC's lack of involvement in the filing has led many to adopt a negative outlook in recent weeks, with the issue of The body began to prepare for the possibility of rejection in May.