Volatility is bound to pick up in the next ten days leading up to the once-in-for-years event called Bitcoin halving.
Key Points:
- Bitcoin regains $72,000 handle.
- Halving trade picks up the pace.
- Volatility to spike in next 2 weeks.
- Bitcoin BTCUSD advanced to kick off the new week as jittery dealmaking pushed prices back above the $72,000 handle after a weak start of April. Early on Monday, the orange coin took off by about 4% to hit an intraday high of $72,700 per token. And just like that, the price tag was back near $70,000 on Tuesday as traders pared back some of their long bets ahead of a key event down the month.
- The Bitcoin halving is expected to hit around April 19 – 20. Once every four years or so, Bitcoin undergoes a reward-slashing mechanism, which reduces the incentive for mining by half. In other words, Bitcoin will become scarcer as new token issuance is cut in half. In previous halvings, the afterparty has historically boosted prices as traders settle into the new normal.
- Is it different this time? Back in May 2020, the last halving saw Bitcoin circling around $9,000 per coin. That’s about 700% rise to date. But now Bitcoin is sitting at an all-time high while four years ago, the OG token was way off its 2018 record high of $19,000. Nevertheless, Bitcoin loves volatility and the crypto landscape is highly likely to get lots of that good stuff.