In recent days, the cryptocurrency market has witnessed strong volatility in the price of Bitcoin, which fell and traded at around $59.650 on Binance. This drop represents a devaluation of almost 4% in the last 24 hours, highlighting a challenging period for the digital currency. At the time of publication, the price of BTC was quoted at US$60.700 with a drop of 2% in the last 24 hours.
Over the course of the last week, the value of Bitcoin has decreased by 12%, further distancing itself from its historic peak of almost US$74.000 reached in March, which represents a 17% reduction in relation to that milestone.
Likewise, most major altcoins have begun a steady decline. ETH broke the $3.000 support and fell to $2.915. XRP is down over 3% and is trading near the $0,48 support. ADA may advance towards the $0,42 support zone. Solana is trading at $130,30 up 2%.
This moment of market decline comes on the eve of a significant event for the Bitcoin community: the halving. This event, which occurs approximately every four years, has the main objective of halving the rewards attributed to Bitcoin miners, which, theoretically, reduces the supply of new coins on the market and can positively influence the price.
However, the recent drop in Bitcoin price cannot be attributed exclusively to the halving. Other factors have contributed to the current volatility, including investors withdrawing capital from Bitcoin exchange-traded funds (ETFs). Furthermore, recent statements by Jerome Powell, chairman of the Federal Reserve, about the need for more progress in the fight against inflation before considering reductions in interest rates, also impacted the market.
Another event that exacerbated the situation was the liquidation of more than $200 million in short positions last Friday, followed by a surge in liquidations following an Iranian attack on Israel. These developments contributed to greater uncertainty and led to an even steeper drop over the weekend.
This set of circumstances shows how dynamic market conditions for Bitcoin can be, especially in periods leading up to important technical changes like halving.
