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Bitcoin has experienced several flash crashes. On April 13th, the price of Bitcoin briefly dropped by over $2,000, from $67,100 per coin to below $65,000 per coin.
Funds flowing into Bitcoin spot ETFs have also been steadily decreasing this week. Data from SoSoValue shows that on April 12th, Bitcoin spot ETFs saw a net outflow of $55.07 million.
Grayscale's GBTC saw a net outflow of $166 million in a single day. The Bitcoin spot ETF with the highest net inflow for the day was BlackRock's IBIT, with a net inflow of around $111 million. As of April 12th, the total net asset value of Bitcoin spot ETFs was $56.22 billion.
Industry insiders attribute Bitcoin's sluggish performance this week mainly to the escalation of geopolitical uncertainties, with market risk-off sentiment spreading to virtual currency assets. Iran launched missile and drone attacks on Israel.
Biden's stance: The U.S. will not participate
On the news front, on the 14th, the Iranian Islamic Revolutionary Guard Corps began launching large-scale missile and drone attacks on Israeli targets.
The Iranian Permanent Mission to the United Nations stated on social media that Iran's attacks on Israel could be considered "over."
According to the latest report from The Times of Israel, after the attacks, Israeli Prime Minister Netanyahu posted on the social media platform X, saying "we intercepted, we thwarted, we will achieve victory together." This is Netanyahu's "first public comment" after Iran's attacks on Israeli targets.
According to the Israeli Airports Authority, Israeli airspace has been reopened.
According to Israeli media reports on the 14th, Biden stated in a call with Netanyahu that the United States would oppose any Israeli retaliation against Iran and would not participate in it.
Important "halving" event approaching
Furthermore, industry insiders suggest that investors' high expectations for the Bitcoin "halving" event and speculative behavior may drive up prices ahead of the "halving," but once these expectations are not met, a large number of investors may choose to take profits, leading to a sharp decline in prices.
The Bitcoin "halving" event refers to the halving of the reward for producing new blocks, which occurs approximately every four years. The specific timing depends on the speed of block generation on the Bitcoin network, which will reduce the supply of Bitcoin. Halving the block reward means it will take longer for all Bitcoins to enter circulation in the market.
BTC.com data shows that as of now, there are less than 7 days left until the fourth Bitcoin block reward halving, with 996 blocks remaining and the halving expected to occur on April 20th. Previously, the Bitcoin network experienced three "halvings" in 2012, 2016, and 2020.
Cryptocurrency trader and independent analyst Rekt Capital stated that before the "halving" event, the price of Bitcoin will continue to decline. In the 2016 and 2020 "halving" cycles, Bitcoin fell by 38% and 20% respectively.
Recently, a report from JPMorgan Chase pointed out that the Bitcoin "halving" event could have a serious negative impact on the profitability of Bitcoin miners. The report warned that Bitcoin's price could plummet to $42,000 per coin, a potential downside of over 36% from the current price.
Bitcoin has seen a sharp rise in value this year. A recent report from Messari showed that Bitcoin achieved a 69% increase in the first quarter of this year, with Bitcoin spot ETFs driving the price increase, with inflows exceeding $12 billion in the first quarter. Bitcoin spot ETFs currently hold 831,000 Bitcoins, worth approximately $59 billion.
It is worth noting that after Bitcoin's price broke through its all-time high, some long-term holders began to cash out. Glassnode data shows that since the end of 2023 when Bitcoin's price surpassed $40,000, the holdings of long-term holders (held on-chain for over 155 days) have been steadily decreasing, while the holdings of short-term holders have been increasing. During this time, long-term holders have sold approximately 900,000 Bitcoins. |
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Post time 21-4-2024 06:57:25