Bitcoin, the leading cryptocurrency, had reached unprecedented highs due to the upcoming Spot ETF approval and the general market surge. However, with the recent drop, concerns arise about its future. The price drop has raised questions about whether Bitcoin will fall below the $40,000 mark.
BTC’s Price Drop Trend
Since reaching an all-time high of $69,000 in November 2019, Bitcoin has been experiencing a downward trend. The institutional interest in the leading cryptocurrency and the pending approval of the Spot ETF have contributed to a significant surge in Bitcoin’s value. Additionally, the halving event, expected to take place in April 2024, has pushed Bitcoin above the $40,000 mark, which had not been seen for a long time.
The halving event is a development that causes a decrease in the cryptocurrency’s supply every four years. Analysts are expecting a positive response from the SEC regarding the Spot ETF applications. If approved, it could lead to substantial gains in the cryptocurrency, but if rejected, it could result in significant losses.
Current Data for BTC
Historical data from the previous halving events in 2017 and 2019 show that Bitcoin reached its all-time high. With the upcoming halving event in April 2024, many cryptocurrency analysts are optimistic about positive developments. However, the recent dip over the weekend brought Bitcoin close to the $40,000 threshold.
Additionally, the weekly CoinShares reports on institutional investors’ entry and exit from the cryptocurrency markets provide insight. The latest report revealed that institutional investors withdrew a total of $16 million from the cryptocurrency markets last week. The announcement of these withdrawals could create new selling pressure on Bitcoin.
