Bitcoin’s price following the halving event on April 19 has been quite the rollercoaster. Initially, BTC saw a significant 10% gain, reaching a high of $67,020 on April 24. However, in the days that followed, the digital asset experienced a 6.49% decline, dropping below the $63,000 mark. This volatile performance has caught the attention of investors and market speculators alike.
Renowned analyst with the handle Rekt Capital has offered an interesting theory on Bitcoin’s recent price movements. In a post dated April 26, Rekt Capital mentioned that Bitcoin has now entered what he calls the Post-Halving “Danger Zone.” This period is characterized by price corrections that Bitcoin historically experiences after a halving event. In 2016, Bitcoin saw similar price retraces in the three weeks following the halving, with a decline of 11%.
Rekt Capital speculates that based on historical patterns, Bitcoin could potentially drop to $60,000 if it follows past price movements during this phase. However, he also notes that if such a decline were to occur, it would likely happen within the next two weeks. As of the latest data, Bitcoin is currently trading around $62,672, reflecting a 2.44% decrease in the last day and an overall loss of 11.16% in the past month.
Data from SoSoValue indicates that the Bitcoin Spot ETF market saw net outflows totaling $217 million on April 25. Notably, Grayscale’s GBTC accounted for $138 million of these outflows, bringing its total outflows to nearly $17 billion. In a surprising turn of events, Fidelity’s FBTC and Valkyrie’s BRRR also recorded net outflows of $22 million and $20 million, respectively. Additionally, ARK Invest’s ARKB and Bitwise’s BITB experienced a loss in investment on the same day. Interestingly, all other Bitcoin Spot ETFs reported zero net flows except Franklin Templeton’s EZBC, which saw a net inflow of $1.87 million.
At the time of writing, the BTC spot ETFs have a combined value of $128 billion, signaling significant growth since their trading debut on January 11. This growth in the ETF market reflects the increasing interest and investment in Bitcoin from institutional players.
The recent price performance of Bitcoin in the aftermath of the halving event has raised concerns among investors. The concept of the Post-Halving “Danger Zone” as highlighted by Rekt Capital provides insights into potential future price movements for the leading cryptocurrency. Additionally, the outflows in the Bitcoin Spot ETF market suggest a shift in investor sentiment towards digital assets. As always, investors are reminded to conduct their own research and consider the risks involved before making any investment decisions in the volatile cryptocurrency market.
