The Bitcoin halving event has taken the highest attention this week in the crypto space, while Bitcoin’s performance loomed on a neutral stance since traders were watchful.
This week was all about the Bitcoin halving event, which has become the buzzword for the global crypto community. So much so that the Bitcoin halving event has trended even in Google searches! Meanwhile, Bitcoin’s performance has become a point of contention in the industry. A majority is in support of a post-halving rally, while others have their concern. However, the overall support of BTC, above $60,000, is one of the main crypto indicators that send positive signals.
Bitcoin began the week on a high, trading above $70,000. Mid-week, however, it was affected by anticipation of sell-offs, a geopolitical crisis in the Middle East, and high inflation in the US. As a result, BTC momentarily dropped below $60,000 but soon bounced back. Other tokens were also trading at stagnant levels or with losses.
Historically, halving events have coincided with significant price increases for Bitcoin, suggesting a possible repeat. However, it’s important to remember that external factors and crypto market sentiments can also influence Bitcoin’s performance.
By halving the number of new BTC miners receive, the event restricts the overall supply entering circulation. This creates scarcity, which could push prices upwards. It will apply if demand for BTC rises or stays the same. Either way, the limited circulation of BTC will help to raise its price.
As a result, several analysts are still heavily bullish on the crypto market. Prominent BTC advocate Anthony Pompliano said in an interview this week, “The last halving, we are four years later. It was eight thousand dollars. Today, it’s $64,000. Name any other asset that has performed so well over a four-year cycle.” He also equated BTC with other assets, like gold, and said it would lead to a recovery cycle soon.
This week, another major progress emerged in Asia, as Hong Kong approved a few BTC and ether spot ETFs. This is another historic moment in the crypto sector. Besides, the US also witnessed the advancement of talks on its stablecoin bill.
Apart from a UK official registering support for better regulations, a new crypto collaborative project started between the German central bank and Massachusetts Institute of Technology to further research on digital currencies.
Here’s a chart representing the best-performing tokens this week:
We can observe how the weekly returns have been low this week. This trend may soon overturn next week with the return of double digit returns.
On the contrary, these tokens saw the highest losses:
Crypto market sentiments hold some pockets of strength despite recent downturns. One reason is the strength and recovery crypto has shown compared to traditional markets. Moreover, the recovery signs in 2024 suggest a maturing crypto market that can push aside concerns and rise further.
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