Bitcoin (COIN: $BTC) Sinks 1%+ on Saturday After 4th Halving Event – Will BTC Pump 500% this Cycle?

Bitcoin (COIN: $BTC) Halving is a mega event in cryptocurrency history, and after this, the Bull Run is most likely to start, and most altcoins start hovering toward beating their all-time high. Bitcoin had already surpassed its previous all-time after the approval of ETFs in late January.

The 4th halving took place at 8:09 PM. Eastern on Friday. As a result of the halving event, mining rewards are now down from 6.25 BTC to 3.12 BTC. Bitcoin experienced its halving when the 840,000th block was added to its blockchain, a rare occurrence occurring approximately every four years.

Will BTC Go Bearish After Halving?

Previously, JP Morgan predicted that Bitcoin might fall after the halving and is down by 2% in the last 6 hours. Indicators such as Moving Averages show a bearish inclination in the charts. Additionally, the price line has yet to pass the Moving Average Exponential (EMA), indicating bearish signs for Bitcoin. Conversely, the Chaikin Money Flow (CMF) indicator remained comfortably above zero, indicating positive capital inflows.

The supply of Bitcoin will momentarily get low in each halving event until and unless it reaches its maximum supply capped at 21 million. This limited supply and increasing demand could enhance its potential as a store of value, similar to how Gold is perceived in the mainstream.

Looking at historical data, Bitcoin has had an average return of 43.67X during each halving cycle. The biggest returns were experienced during the first cycle; BTC appreciated a maximum of 93X, 30X in the second cycle, and 8X in the third cycle. In the current cycle, how far it could rise is yet to be determined. 

BlackRock Bitcoin ETF Inches Close to Overtake Grayscale

Blackrock Bitcoin ETF is close to surpassing Grayscale and becoming the world’s largest company with the most Bitcoin funds. BlackRock employs a familiar strategy when introducing new asset classes within the ETF framework.

According to a Bloomberg report, only $2 billion is left for Blackrock iShares IBIT to surpass Grayscale GBTC. This means insert “that “that Blackrock is on the verge of dethroning GBIT and becoming the largest Bitcoin ETF. 

Grayscale Bitcoin Trust has lost over $16 billion in value for a constant 16 days, and now the value of the assets stands at $19.4 billion. On the other hand, IBIT’s total assets have surged to over $17.3 billion due to continuous inflows over 68 days.

Bitcoin Price Performance

As of 9:59 AM in New York on April 20, 2024, BTC is trading at $63,867.45, down 1.5% in the past 24 hours. The market cap is $1.26 trillion, with a 24-hour trading volume of $28.29 billion, a decline of 44.02%. Bitcoin has shrunk its value by 13.38% from its all-time high of $73,750 on March 14, 2024.

Should You Invest in Bitcoin?

According to our analysis, Bitcoin is currently showing bearish signals. As such, the price could continue on its downward trajectory in the short term. Its dominance in the crypto market also means it could pull down other coins as well. As such, now might not be an opportune entry point. 

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