In the intriguing world of cryptocurrency, Bitcoin has often been the thrilling leader, its meteoric rise and dramatic falls a heart-stopper, the likes of which you’d find only in an edge-of-the-seat thriller. This time, it’s no different. The action kicked off with the halving event on April 19, following which Bitcoin, always known to defy expectations, amped up by nearly 10%, pushing through the ceiling to reach a high of $67,020 on April 24. But the euphoria was short-lived as Bitcoin decided to play out its mystery in the following two days when it unexpectedly dipped almost 6.49%, falling shy of the $63,000 mark.
Investors and market spectators watched the unfolding drama with bated breath. The attention was unsurprising, given that it’s Bitcoin we are talking about. Among the notable spectators, a well-known analyst, known by the handle Rekt Capital, decided to share his theory on the recent fall in Bitcoin’s price as well as the potential future movements of the market leader in the cryptocurrency world.
In an unsettling revelation on April 26, Rekt Capital pointed out that Bitcoin had entered the Post-Halving “Danger Zone.” This ‘zone’ referred to a potentially hazardous period during which Bitcoin had, in the past, experienced significant price corrections after such halving events. Drawing parallels from the past, Rekt Capital noted a similar price retrace in 2016 when Bitcoin’s value declined by about 11% in the three weeks following the Halving event.
Adding to the intense speculation, the analyst predicted that Bitcoin might be inviting a similar fate in the current bull cycle, following its price fall over these last two days. The analyst put a precise number to the potential loss, estimating it to be around $60,000, if the past should decide to echo in the present. But fear not, for such a downturn, if it does happen, would likely be a contained event of the next two weeks, weighed Rekt Capital.
As the world waits for the next act in this financial drama, Bitcoin’s current market performance shows it to be at around $62,672. This rate, underscored by a significant 2.44% decline in the last day, marks a nerve-wracking negative performance over the last month, with Bitcoin losing around 11.16% of its market value.
Keeping pace with this nail-biting narrative, the Bitcoin Spot ETF market recorded net outflows amounting to $217 million on April 25, according to data from SoSoValue. The major part of this financial exodus was represented by Grayscale’s GBTC, which accounted for $138 million, nudging its total outflows closer to $17 billion.
Startlingly, this was the first time that Fidelity’s FBTC and Valkyrie’s BRRR had reported net outflows, estimated at $22 million and $20 million respectively. While not escaping the common theme, ARK Invest’s ARKB and Bitwise’s BITB also experienced ebbing investment on Thursday.
On the brighter side, all was not lost for Bitcoin as Franklin Tempoton’s EZBC swam against the tide to record a net inflow of $1.87 million. The combined value of the BTC spot ETFs stood at a formidable $128 billion, a remarkable rise, indeed, from their trading debut on January 11.
