Brace Yourself for a Potential Bitcoin Price Turnaround 📈
Bitcoin has recently experienced a significant price drop, falling to nearly $65,100. Despite this downturn, there are factors at play that could drive a positive shift in the market performance of this digital asset. Let’s take a closer look at what’s happening and what might lie ahead for Bitcoin.
Abandoning Exchanges 🔄
The price of Bitcoin has seen a considerable correction in the last few hours, dropping to as low as $65,100. Even though the cryptocurrency is down by 7% over the week according to CoinGecko, some key indicators suggest that this downward trend may not be long-lasting.
- Bitcoin’s exchange netflow, as reported by CryptoQuant, has been consistently negative over the past seven days, indicating a move away from exchanges towards self-custody solutions. This shift is seen as a bullish sign since it reduces immediate selling pressure on the asset.
The BTC Halving 🪙
One significant event that could potentially lead to a resurgence in Bitcoin’s price is the upcoming halving, set to take place at the end of April. This event occurs roughly every four years or after 210,000 blocks have been mined on the network, cutting the rewards given to miners in half.
- The halving reduces the rate at which new BTC is created and enters circulation, making the asset scarcer and possibly more valuable over time. This process will continue for more than a century until the maximum supply of 21 million BTC is reached.
- Historically, the halving has acted as a catalyst for future price movements for Bitcoin and the broader digital asset market.
- For those interested in whether Bitcoin has a chance of reaching a new all-time high before the halving, they can consult the AI chatbot Perplexity for an estimation.
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