April 23, 2024
Bitcoin's at $66,061, Nears $67K Post-Halving
Bitcoin price today

Bitcoin’s at $66,061, Nears $67K Post-Halving

Tuesday, April 23, 2024: Bitcoin Price is at $66,061. Cryptocurrency markets surged on Monday, with Bitcoin nearing the $67,000 mark amid easing concerns of a significant downturn. Following its quadrennial halving event, which halved the issuance of new supply, Bitcoin rose over 3% in the past 24 hours, reaching $66,500. Ether remained steady near $3,200, experiencing a 1.5% advance during the same period.

Source: TradingView

Broad-Based Growth Across Cryptocurrencies

The positive momentum extended across the cryptocurrency market, with 163 out of 173 cryptos recording positive daily returns. The data saw a gain of over 3% during the day, driven by the performance of layer-1 blockchain Near Protocol’s native token (NEAR), which surged by 15%.

Impact on Digital Asset-Focused Stocks

The upward trend also affected stocks focused on digital assets, with shares of crypto exchange Coinbase (COIN) and MicroStrategy (MSTR) rallying by 7% and 12%, respectively. Publicly listed miners Riot Platforms (RIOT) and Hut 8 (HUT) experienced significant surges of 15%-20%, while Marathon Digital (MARA) advanced by 6%. This surge was attributed to a transaction frenzy causing a spike in fees, which are becoming increasingly important revenue sources for miners.

Expert Analysis and Market Outlook

Markus Thielen, founder of 10x Research, expressed caution about the impact of Bitcoin’s halving, stating that it is “not a bullish event” and warning of potential market weakness in the coming months. He highlighted the likelihood of a deeper correction due to miners offloading their BTC inventory to maintain operations after a reduction in revenue.

However, crypto hedge fund QCP Capital provided a contrasting viewpoint, noting that the past three halvings were followed by significant price increases for Bitcoin about 50-100 days after the event. The fund suggested that if this historical pattern repeats, Bitcoin bulls still have time to build larger long positions.

QCP Capital also observed a cooling off of funding rates, which represent the cost leveraged derivatives traders must pay to maintain their positions. Some smaller cryptocurrencies even saw funding rates turn deeply negative, potentially signaling an opportunity for a swift price increase if risk appetite returns.

Funding rates have cooled substantially compared to last month (CoinGlass)

Short-Term Expectations and Speculative Sentiment

In the short term, QCP Capital anticipates a potential short squeeze driven by altcoins and memecoins with persistent negative funding rates. Improving speculative sentiment could lead to short covering and a resurgence of leveraged long positions, particularly in assets with deeply negative funding rates.

As market dynamics continue to evolve, investors are closely monitoring these factors for potential opportunities and risks in the cryptocurrency space.

Image by fabrikasimf on Freepik

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