of bitcoin price It fell below $70,000 early Monday as volatility increased ahead of this month's long-awaited block reward halving.
Bitcoin is currently down 1.1%, trading at around $69,565, but remains up almost 4% for the week, according to CoinGecko data.
Bitcoin's halving is scheduled for around April 20th, and one of the indicators used to track cryptocurrency volatility has spiked in recent days.
Bitcoin's 30-day annualized realized volatility reached a high of 63.76% last week and remained above 60% until the end of the week, the highest level since August 2022, according to Glassnode data. It becomes. Realized volatility tracks the standard deviation of returns. It is an average value over a period of time, with higher values reflecting increased price risk over that period.
Bitcoin annualized realized volatility (1 week, 30 day moving average).Source: Glassnode
Bitcoin volatility spikes ahead of April halving
Late last month, Beam CEO Andy Blomberg said: Decryption Bitcoin's recent volatility reflects a “crisis of faith” among traders ahead of the block reward halving.
During Bitcoin's halving, which occurs every four years, the block reward allocated to miners is cut in half as a means of controlling the distribution of the fixed supply of 21 million Bitcoin. At the 2024 halving, the mining reward will decrease from 6.25 BTC to 3.125 BTC.
Historically, each halving of Bitcoin has been followed by a spike in cryptocurrency prices, but some analysts have warned that this may be priced in. Meanwhile, a recent report from Coinbase noted that historical price increases are also correlated with broader macro events, including: The coronavirus pandemic and lockdowns have led to “unprecedented monetary easing and historically strong fiscal stimulus.”
The halving in 2024 is also unusual as the price of Bitcoin has hit an all-time high. first The halving was propelled by the approval of multiple US spot Bitcoin ETFs in January. The result could be a supply shortage, as ETFs scoop Bitcoin from the market and the halving sharply reduces the supply of new Bitcoin, which some analysts believe could be a bullish move as the halving approaches. He points out that it serves as an indicator.
