Crypto News – People who were expecting a spike in price following the fourth halving of bitcoin may have become concerned due to the dramatic decrease in price over the last few days.
Possible Reasons Behind the Post-Halving Bitcoin Price Drop
Since the halving, which took place on April 20, the price of Bitcoin has fallen 11%. Near $64,000 was the price of Bitcoin on the day of the halving. Shortly after the halving, on April 22, Bitcoin saw a brief upswing that brought its price beyond $67,000. CoinGecko data indicates that since then, it has been progressively declining, with a dip below $57,000 on May 1.
Bitcoin is currently trading at $57,362, up almost 2.13% over the last 24 hours and down more than 10.18% over the last 30 days. Those who anticipated that Bitcoin’s price would climb following the event in accordance with some of the prior halving-related cycles may have been taken aback by the sudden drop in price following the halving.
How is the Fourth Halving Different from the Others?
Bitcoin halvings have historically been linked to post-event rallies, which typically occur a year or later. In December 2017, for instance, Bitcoin reached a milestone of $20,000 after surging by about 3,000% in just 17 months following its halving in 2016.
But in terms of the features of the Bitcoin halving, this current cycle is substantially different from previous ones. One notable distinction is that before the fourth halving, Bitcoin went through an incredible bull run, hitting a new peak just in time for the event. There has never been a price trajectory like this in Bitcoin history.
What’s unique about this latest Bitcoin halving is the incredible bull run and price action leading up to it. Even considering this recent pullback, Bitcoin has still been up 35% since the start of the year. Considering the expectation of yet another Fed pivot and what’s happening in the stock market, Bitcoin’s current price action is hardly a surprise. We’ll be a lot smarter about that later today, though
Mati Greenspan, Quantum Economics founder
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