Bitcoin Selling Could Pick Up before BTC Halving 2024, Says Crypto.com CEO
According to Crypto.com CEO, Bitcoin halving would be a buy-the-rumour, sell-the-news event. In the short term, it could lead to price volatility but would be overall positive in the long term.
We are just four days away from the much-awaited fourth Bitcoin halving event scheduled around April 20, 2024, and Bitcoin price is already facing some strong selling pressure. In a Bloomberg interview, Crypto.com Chief Executive Officer Kris Marszalek said that the Bitcoin price could continue facing selling pressure up to the halving.
On Monday, the Bitcoin price showed strong momentum in the Asian trading hours shooting all the way to $67,000 amid the approval of the spot Bitcoin ETFs in Hong Kong. However, this enthusiasm remained short-lived as the rising US Treasury yields dampened the market sentiment pulling back Bitcoin all the way to $62,500.
According to Marscalek, there may be some selling coming up due to buy-the-rumor, sell-the-news trading. However, he added that Bitcoin halving 2024 will have a net positive impact on BTC price in the longer term. “I expect pretty decent action within the six months following the Bitcoin halving,” Marszalek said.
The upcoming Bitcoin halving event will reduce the mining rewards in half thereby posing a major challenge to Bitcoin miners. As per estimates, Bitcoin miners are likely to dump upwards of $5 billion worth of BTC post the fourth Bitcoin halving. This would be basically in order to covet the higher operational costs and prevent any more revenue slump.
Bitcoin miners have been already preparing for months ahead of the Bitcoin halving while accumulating BTC in big numbers. Furthermore, they are also gearing up to upgrade their equipment in order to cater to the high computational needs after the halving event.
Bitcoin Market Dominance Jumps to 55%
Despite all this price volatility, Bitcoin continues to extend its grip in the broader crypto market. As per the latest report, the Bitcoin market dominance has turned to a three-year high at 55%. One of the major reasons behind this has been the strong inflows into the spot Bitcoin ETFs over the last three months ever since launch.
US spot ETFs, including those from BlackRock Inc and Fidelity Investments, launched three months ago, have collectively gathered around $56 billion in assets. This achievement marks one of the most successful debuts for a fund category to date.
#Bitcoin ETF demand has stagnated for 4 weeks, yet on-chain accumulation remains very active, even when excluding ETF settlement transactions. pic.twitter.com/PqMTzJrAym
— Ki Young Ju (@ki_young_ju) April 16, 2024
However, over the last few weeks, the inflows into Bitcoin ETF have lost steam and remained subdued for now. Despite this, the on-chain accumulation by Bitcoin whales continues to remain high.
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