Pre-Halving Jitters: Bitcoin Price Briefly Slips Below $60,000

The Bitcoin price has recently experienced heightened volatility, causing the largest cryptocurrency in the market to briefly drop below the significant threshold of $60,000 for the first time since March 5. 

However, market participants are questioning whether the Halving’s effects are already factored into the current market conditions, leading to extended bearish sentiment.

Long-Term Bullish Outlook Prevails

Bitcoin’s decline saw it plummet by 5% to $59,890, though it recovered some losses shortly afterward. Since reaching an all-time high (ATH) of $73,700 on March 14, the Bitcoin price has now retraced by approximately 18%. 

The downward trend extended to other major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), which also experienced slumps on Wednesday.

The recent decline in Bitcoin’s price was further exacerbated by a wave of liquidations in long positions for digital assets. Last Friday alone, approximately $780 million worth of bullish crypto wagers were liquidated within 24 hours. 

Ravi Doshi, head of markets at FalconX, reported increased buying of longer-dated call options on their derivatives desk, suggesting that clients anticipate higher prices in the latter half of the year.

Bitcoin Price Rebounds Above $61,000

The market is closely watching whether the theory suggesting that the Halving price catalyst is already factored into the current market conditions holds. Additionally, the performance of Bitcoin ETFs in the United States and their potential impact on driving the cryptocurrency’s price back to previous highs are of significant interest.

Ultimately, the outcome of the Halving event, combined with the developments in both the US and Hong Kong ETF markets, remains uncertain. The ability of Bitcoin to regain its bullish momentum and drive increased demand will be closely monitored.

Featured image from Shutterstock, chart from TradingView.com