The 11% Plunge: Bitcoin Price Drops Post-Halving

After the fourth Bitcoin halving, the price of Bitcoin has seen a significant decline, causing concerns among those who expected a surge. The price dropped by 11% since the halving, which took place on April 20. Initially, Bitcoin experienced a short rally, reaching over $67,000 on April 22. It has been steadily selling off since then, falling below $57,000 on May 1.

Currently, Bitcoin is trading at around $57,362, marking a 7% decrease in the past 24 hours and over 17% in the past 30 days. This sharp decline post-halving has surprised some individuals who anticipated a rise in line with previous halving cycles. Historically, Bitcoin halvings have been associated with post-halving rallies, typically occurring about a year later or more. For instance, after the 2016 halving, Bitcoin experienced a 3,000% increase in value over 17 months, reaching a milestone of $20,000 in December 2017.

The current halving cycle is different from the past in terms of Bitcoin’s behavior. Prior to the fourth halving, Bitcoin had been on an extraordinary bull run, reaching a new all-time high. This scenario is unprecedented in the history of Bitcoin. Mati Greenspan, the founder of Quantum Economics, expressed that while the drop in BTC price was somewhat expected given the decline in the stock market and economic circumstances, the situation would become clearer later.

Some analysts had predicted a drop in Bitcoin following the halving. In March 2024, analysts from JPMorgan forecasted that Bitcoin could decrease to around $42,000 after the halving. Markus Thielen, the CEO and head analyst of 10x Research, believes Bitcoin could fall to $52,000 following the halving. He attributes the recent rally to the inflow of funds into Bitcoin exchange-traded funds, which has significantly slowed down in the past month.

Other analysts, such as Lyn Alden, an investment researcher, argue that there are multiple factors beyond the halving and U.S. Bitcoin ETFs that could drive Bitcoin to new highs in 2024. Despite the recent decline, Bitcoin has still seen a 35% increase since the beginning of the year.

2 thoughts on “The 11% Plunge: Bitcoin Price Drops Post-Halving

  1. It’s interesting to see how Bitcoin behaves differently in each halving cycle. The market is ever-evolving.

  2. The decline in Bitcoin’s price could be an opportunity for new investors to enter the market.

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