bitcoin BTC
+3.71%
It performed a slight recovery over the past day, recording a 5% gain on the eve of the digital asset’s halving.
Spot Bitcoin exchange-traded funds (ETFs) showed a cautious upward trend despite recording consecutive net outflows. According to The Block’s data dashboard, combined U.S. spot Bitcoin ETFs have recorded a total outflow of $641 million over the past five consecutive trading days since last Friday. During the same period, ETF inflow was only $321 million, resulting in a net negative flow of $320 million. This is the longest net outflow streak in a month and comes ahead of the halving event, which is expected to be strong.
According to The Block’s pricing page, the largest digital asset by market cap is up about 5% in the past 24 hours and was trading at $65,331 at 8:37 a.m. ET. However, due to market volatility, the price quickly fell below the $65,000 level. The GM 30 index, which represents the top 30 cryptocurrencies, rose 3.74% to 130.64 over the past 24 hours.
Bitcoin price exceeded $65,000. Image: Block.
Risk-on sentiment remains until just before halving
Bitcoin halving market sentiment was noticeably optimistic until a week ago, with many analysts predicting a price surge following the event. This optimism has been fueled in part by Bitcoin surpassing its 2021 cycle highs even before the halving, hitting an all-time high of over $73,000 in mid-March and growing interest from both institutional and retail investors.
But according to Bitfinex derivatives head Jag Kooner said market sentiment on risk overshadowed previous exuberance surrounding the Bitcoin halving after last weekend’s deleveraging exercise following Iran’s launch of missiles and drones toward Israel.
“It remains to be seen whether the macro situation will impact fundamentals, but sentiment is clearly more cautious now than it was just a week ago,” Kooner said in a note to The Block.
Bitcoin price performance after halving
According to Duncan Ash, head of strategy at Coincover, prices will rise in the upcoming halving until the near-term appreciation in value deters new investors. “This will restore a closer balance between the number of buyers and sellers and stabilize the market. Additionally, the industry will emerge with more users, higher market capitalization, and greater liquidity,” Ash said in an email to The Block. said.
However, Coinbase analyst David Han said investors should not rule out a price correction after the Bitcoin halving.
“Given the high level of realized volatility for the year, a further downward move is within the realm of possibility. That said, while traders appear to be bracing for a possible downside, options pricing and on-chain indicators still indicate constructive cyclical positioning. in the near future,” Han said in an email to The Block.
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