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On April 17th, Bitcoin fell below the crucial $60,000 mark during intraday trading, hitting a new low since March 6th, with a current intraday drop of approximately 4%. US spot Bitcoin ETFs generally dropped by over 3%, with BITB and ARKB falling by 3.9%, showing the worst performance. The 2x long Bitcoin ETF BITU plummeted by 7.7%, while the 2x short Bitcoin ETF SBIT surged by 7.2%.
Cryptocurrency-related stocks are currently experiencing mixed movements, with Mercurity FinTech rising by 16.2%, Jia Nan Technology ADR rising by over 1.3%, and "major Bitcoin holder" MicroStrategy (MSTR) plunging by 7.8%.
An article on the Wall Street Journal website mentioned that amidst the price weakness, Bitcoin welcomed its fourth "halving" in its fifteen-year history. This event is expected to become the most attention-grabbing and influential headline news in the cryptocurrency circle recently.
"Halving" refers to the reduction of rewards obtained by miners through mining. Every time the Bitcoin blockchain produces 210,000 blocks, the Bitcoin block rewards are halved. One of the original intentions of Bitcoin's design is to become a deflationary asset, with its value increasing over time. Therefore, the Bitcoin rewards obtained by miners must decrease over time, thereby limiting the total supply of Bitcoin.
It is worth mentioning that previous "halving" events occurred a few months before the start of a Bitcoin bull market cycle. In theory, the impact of "halving" on Bitcoin's price may already be reflected as the approximate date is known in advance. However, what is different this time is that after reaching a historic high, Bitcoin experienced a halving so quickly. Analysts believe that this halving may be one of the driving forces behind the cryptocurrency market's rally this year. |
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Post time 24-4-2024 12:58:53
