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BTC rose to $71,000 as the bitcoin halving event approaches. There are a number of factors affecting the volatility of BTC price.
Historically, bitcoin halving has been associated with volatility and price acceleration due to the direct impact on the supply-side economics system of cryptocurrencies.
Shift In Bitcoin’s Trend
The shift indicates a growing optimism among investors, potentially spurred by the anticipated supply cut due to the halving event. Further underscoring the frenetic activity in the market, total liquidations have hit over $108 Million during the past 24 hours, as reported by CoinGlass. The rising open interest level and hash rate growth over time indicate that many people believe that the commodity market will improve and create a profitable timeframe for mining shortly.
Bitcoin Cash Is Attracting Investors
The open interest level in the daily Bitcoin cash (BCH) perpetual futures contracts market has reached a new high of $708.75 Million, with an impressive 18.26% daily growth and a 165% weekly growth. Analysts predict that this could be because the bitcoin halving event date is approaching.
Bitcoin Cash is the result of a hard fork of the OG bitcoin blockchain.
Although the charts for March show lower volume for close market engagement compared to May 2021, when open interest dropped to $684.12 Million and Bitcoin cash reached a five-year high of $1,399, the market’s attraction to future halving events is a healthy sign of investors’ flourishing sight and speculation interest.
There is a positive correlation between short and long positions taken, indicating the expectation of going long or short as the event approaches.
Analyst Predicts $85K For Bitcoin Before Halving
Crypto pundit on X – Martini Guy recently predicted the future price trajectory of Bitcoin (BTC) in a tweet. Martini Guy predicts that Bitcoin will reach the $85,000 price mark before the next halving that is expected to take place in April.
For the prediction to hold true, Bitcoin’s price would need to increase by at least 21% before April 15th, which is the approximate date of the halving. Given that Bitcoin has already surged by over 35% last month, it is highly probable that Bitcoin will achieve a 21% price gain in the next three weeks. However, this figure highlights the volatile nature of the market, with significant sums shuffled as traders position themselves ahead of expected fluctuations.
Other Influencing Factors For Bitcoin Halving
Based on historical precedents, the halving event could usher in a new era of market behavior for Bitcoin and cryptos associated with it like Bitcoin Cash and Bitcoin SV, among other cryptos, including changes in value and approach to investors and miners. Federal Reserve Chairman Jerome Powell’s comments may influence the current optimism.
Powell said the US economy could avoid a recession. Cryptocurrency’s impact on supply and demand and the intrinsic value of Bitcoin Cash are becoming significant factors of focus and speculation.
Summary
BTC has risen to as high as $71,000 again, leading to growing optimism among investors due to the anticipated supply cut promised by the bitcoin halving event. An expert in Twitter’s cryptocurrency domain, predicts the future price trajectory of Bitcoin through a tweet. The upcoming halving event’s impact will be huge and investors should expect to make sharp movement in the market.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
