“Bitcoin’s Pre-Halving Correction Narrative Grows Stronger as BTC Drops Below $62K”

“Bitcoin’s Pre-Halving Correction Narrative Grows Stronger as BTC Drops Below $62K”

Bitcoin News
March 20, 2024 by Diana Ambolis
249
“According to Charles Edwards, founder of Capriole Fund Bitcoin, the majority of those interested in purchasing before the halving have already done so.” Analysts foresee a notable uptick in Bitcoin’s price despite its recent drop from an all-time high of $73,738 to $63,045 over the past six days. Charles Edwards, the founder of Capriole Fund,
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“According to Charles Edwards, founder of Capriole Fund Bitcoin, the majority of those interested in purchasing before the halving have already done so.”

Analysts foresee a notable uptick in Bitcoin’s price despite its recent drop from an all-time high of $73,738 to $63,045 over the past six days. Charles Edwards, the founder of Capriole Fund, noted on March 19 that volatility typically increases around Bitcoin halving events, suggesting that the 12-month period post-halving presents a favorable risk-reward scenario for investors. Edwards anticipates a reduction in inefficient miners following the halving, expected between April 18 and 20.

Although Bitcoin briefly dipped to $61,593 on March 20 before rebounding to $62,690, Edwards believes the correction may not have concluded yet but remains positive about long-term price prospects.

Contrary to Edwards’ viewpoint, CryptoQuant’s founder and CEO Ki Young Ju attributed Bitcoin’s market dynamics more to spot Bitcoin exchange-traded fund (ETF) flows than to the halving event. Ju predicts that post-halving, mining expenses will double, necessitating a certain price threshold for profitability, but current levels around $63,000 pose no significant challenge for miners.

Also, read- Bit Digital, a Bitcoin mining company, reveals a nearly 40% increase in revenues

Crypto analyst Rekt Capital, with a substantial following on social media, suggests further downside potential for Bitcoin, pointing out historical pre-halving retracements. In past halving cycles, Bitcoin saw declines of around 50% before consolidating and resuming an upward trajectory. The 2024 halving presents unique circumstances, with unprecedented institutional support from spot Bitcoin ETFs.

While previous halvings occurred at lower price levels for Bitcoin and lacked extensive institutional backing, the landscape in 2024 differs significantly, potentially influencing the trajectory of the digital asset post-halving.