Bitcoin fell to its lowest price in over a month today. (Photo illustration: Chesnot/Getty Images)
Bitcoin prices plummeted today, plummeting towards $60,000, the lowest in more than a month.
The world's most famous digital currency previously fell to $60,090.43, according to CoinMarketCap.
At this point, the cryptocurrency had lost nearly 7% of its value in 24 hours and was trading at its lowest price since late February, additional statistics from CoinMarketCap revealed.
Over the next few hours, Bitcoin oscillated close to $60,000 and made repeated attempts at that price level.
At the time of writing, the digital asset's price was just around $61,300.
Future half-life
These latest price movements occurred just ahead of the next halving, currently scheduled for April 19th.
When this event occurs, the Bitcoin mining incentive will be reduced by 50%, dropping from 6.25 Bitcoin units to 3.125 Bitcoin units.
As a result, this is the fourth time that the new supply rate has been cut in half. Previous halvings occurred in 2012, 2016, and 2020.
Several analysts agree that the upcoming halving is contributing to Bitcoin's recent price movements.
Brett Shiffring, an investment advisor at Gerber Kawasaki Wealth & Investment Management, acknowledged that this event played a part in causing the recent decline in Bitcoin prices.
“I think the recent decline in Bitcoin has a double meaning,” he said in an emailed comment.
“First, part of this can be attributed to the classic adage of ‘buy the rumor, sell the news’ regarding the upcoming Bitcoin halving. “It is natural that some investors and traders will take profit when the catalyst passes, as it is driven by supply metrics and potential catalysts,” Shiffring said.
Tim Enneking, managing partner at Psalion, also participated and provided comments via email.
“The standard half-life story still seems to be going on, but this time some of the details have changed (history doesn't repeat itself, but it rhymes like Mark Twain supposedly wrote it),” he said. said.
“BTC reached ATH much faster than previous halving cycles would indicate,” Enneking added.
“Normally we wouldn't have seen an ATH until early 2025. It's clear that the spot BTC ETF was the trigger, with the halving coming soon, and the possibility of a spot ETH ETF arriving in early May. “Gender will be an additional driver,” he said.
“Your specific question was, is this just a matter of 'buying rumors and selling news?'” Enneking said. “Everyone knows exactly when the halving will occur, but it can't actually happen because the 'news' hasn't arrived yet.”
“The cost these days is some tough geopolitical news and US economic news (Israel-Iran, China, 'higher is longer,' etc.),” he added.
“In any case, this is a healthy and much-needed consolidation after the significant rally over the past few months. Of course there is no need to panic,” Enneking concluded.
macroeconomic factors
When explaining Bitcoin's latest price movements, analysts also pointed to macroeconomic factors, such as the latest Consumer Price Index (CPI) numbers and expectations surrounding the Federal Reserve's monetary policy.
As mentioned above, Shiffling emphasized how expectations surrounding the upcoming halving are influencing Bitcoin price movements. However, he also mentioned other variables.
“Secondly, I think macro factors have weighed on Bitcoin prices: last week’s inflation numbers, recent global geopolitical turmoil overseas, and Chairman Powell hinting at keeping interest rates steady for an extended period of time. “'s recent statements have all given investors reason to get nervous and part with their profits,” he said.
“Bitcoin is considered a risky asset by most investors, so the move appears to have been in conjunction with the decline in the U.S. stock market.”
Grant Tungate, Head of Business Development at Blockforce Capital, also spoke about the impact of these developments.
“Bitcoin’s recent decline from all-time highs is primarily driven by macro forces,” he said in an emailed comment.
“The market reassessed the likelihood and speed of a rate cut on the back of better-than-expected inflation numbers and the Fed's commentary,” Tungate added.
“Furthermore, a strong dollar is putting pressure on BTC. This sell-off is not limited to Bitcoin, but is widespread across rate-sensitive risk assets, with the Russell 2000 Index as an example It is down ~8% from its recent peak.”
Disclosure: I own some Bitcoin, Bitcoin Cash, Litecoin, Ether, EOS, and SOL.
