Here’s Why Bitcoin Continues to Fall

Repair continues

Bears seem determined to screw up the Bitcoin halving. Assets have continued to decline since this event. At the time of writing, BTC is down 5.73%. Today, the price of the satoshi coin even fell to $57,100, a level it has not reached in more than 60 days. Compared to its ATH of $73,800, Bitcoin’s current state is worrisome, representing a decline of 21.68%.

Experts like Rekt Capital say that this Bitcoin correction after the halving is not surprising, as the asset followed the same pattern in 2016. However, the reasons behind the asset’s decline are more complex than simple cycles. Indeed, they include expectations of the US Federal Reserve’s interest rate decision, which is scheduled for this Wednesday 1. Therefore, investors expect the central bank to keep rates high, which is reflected in the levels of 10-year US Treasuries, which reached 4.69% today .

This situation encourages investors to take a more cautious stance towards risky assets such as Bitcoin. Inflows into bitcoin ETFs are down 10% from last week’s peak, according to data from Farside Investors. Blackrock’s ETFs also seem to be suffering from this situation.

Bitcoin: Back to $52,000

According to analyst Markus Thielen, Bitcoin could drop to $52,000 after the halving. “The main reason for the recent increase in the price of Bitcoin has been the inflow of funds into Bitcoin ETFs, which have now dried up over the last 4-5 weeks. Market indicators have weakened,” he says in a post on X.

JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a March report that the price of Bitcoin could fall to $42,000 after the halving. “This $42,000 estimate is also the level we imagine BTC prices will move towards once the euphoria caused by the Bitcoin halving wears off after April,” they said.

Good News ? This correction could trigger the beginning of the altcoin season. “BTC’s dominance monthly candle indicates that it has peaked in recent weeks. I expect a rotation towards altcoins from Bitcoin starting this month,” explain Michael Van de Poppe in a post on X.

Moral of the story: When BTC sneezes, altcoins get ready to dance in the rain!


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