Bitcoin’s price has been on a rollercoaster ride ever since the halving event on April 19. Initially, the cryptocurrency saw a significant increase, climbing nearly 10% to reach $67,020 by April 24. However, in the following days, Bitcoin’s price experienced a sharp decline of 6.49%, dropping below the $63,000 mark. This unexpected performance has caught the attention of investors and market speculators alike.
Renowned analyst Rekt Capital has put forward a theory regarding Bitcoin’s recent price fall and its potential future movements. In a post on April 26, Rekt Capital mentioned that Bitcoin has entered the Post-Halving “Danger Zone.” This phase, according to the analyst, is a period where Bitcoin historically undergoes price corrections following a halving event. Drawing a comparison to 2016, Rekt Capital noted that Bitcoin faced price retraces in the three weeks after the previous halving, with a decline of 11%. The analyst predicts that Bitcoin is currently in a similar “Danger Zone” in the current bull cycle, and if history repeats itself, the token could drop to $60,000 in the next two weeks.
As of the latest data, Bitcoin is trading around $62,672, reflecting a 2.44% decrease in the last day. This decline highlights Bitcoin’s negative performance in the past month, where it has lost 11.16% of its market value. The current price level and trend suggest a sense of uncertainty among investors regarding the future direction of Bitcoin’s price.
Data from SoSoValue indicates that the Bitcoin Spot ETF market witnessed net outflows amounting to $217 million on April 25. Notably, Grayscale’s GBTC accounted for the majority of these outflows at $138 million, pushing its total outflows close to $17 billion. Surprisingly, Fidelity’s FBTC and Valkyrie’s BRRR also saw net outflows of $22 million and $20 million, respectively, for the first time. Other players like ARK Invest’s ARKB and Bitwise’s BITB also experienced losses in investments on that day. However, Franklin Tempton’s EZBC stood out with a net inflow of $1.87 million. These outflows and inflows indicate a mixed sentiment in the Bitcoin Spot ETF market, reflecting uncertainty and potential risk aversion among investors.
Bitcoin’s recent price fluctuations, along with the outflows in the Bitcoin Spot ETF market, portray a complex and uncertain landscape for the cryptocurrency. Investors and traders should exercise caution and conduct thorough research before making any investment decisions. The volatile nature of the crypto market underscores the importance of staying informed and being prepared for unexpected price movements.