In a recent development, the crypto market recorded significant price correction, falling amid heavy liquidations as the price of Bitcoin plummets massively to $62k price.
The market experienced a significant correction of 7.12% resulting in the industry’s market capitalization dropping to $2.45 trillion. The massive correction in valuation also saw top altcoins lose significant value in their respective portfolios.
Analyzing the fall in the price of Bitcoin, analysts attributed it to various factors such as macroeconomic influences, technical vulnerabilities, and majorly the upcoming halving event.
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With Bitcoin Halving which is a few days away, the industry is predicted to record a massive bullish sentiment, making this an excellent opportunity for investors to enter the market.
According to CryptoPotato, a CryptoQuant analyst has warned that Bitcoin may be at risk of a significant price correction, despite the upcoming halving event. The analyst, known as Gaah, stated that the crypto market remains in a precarious position, particularly for leveraged traders. He suggested that substantial pressure could lead to a correction that would disrupt Bitcoin’s current price structure.
The forthcoming halving is predicted to boost the price of Bitcoin as it is set against the backdrop of ever-broadening demand for Bitcoin, driven by the approval of ETFs. Since January, Bitcoin ETFs have recorded more than $11 billion in fresh capital, making it the most successful ETF launch in history.
Analysts suggest that the reaction to 2024’s halving could not only be more pronounced but also be more widely enjoyed, as today nearly one-third of Americans own or are directly invested in Bitcoin, far more than during the last halving in 2020.
They also suggest that the 2024 Bitcoin halving is likely to have a bullish effect, predicting that the exact rise is not a very wise move in the volatile world of cryptocurrencies, but there is a consensus that the halving could potentially spark a significant uptick in value. Furthermore adding that post-Bitcoin Halving, altcoins may witness a massive jump, resulting in a possible Altseason.
The overall crypto market sentiment is currently euphoric, as evidenced by the high funding rates in the Bitcoin futures market. This indicates a period of extreme greed and creates a potential for a significant decline.
The crypto market is on the path to achieving a new all-time high (ATH) during the upcoming months as the number of investors and inflow of digital assets is on the rise on a daily basis. Amidst the recent sell-off in the crypto market, some traders perceive potential buying opportunities, highlighting the dynamic and volatile nature of the crypto market.