Bitcoin’s price has taken a hit, dropping below the $60,000 mark as the highly anticipated halving event draws near. CoinMarketCap data reveals that Bitcoin (BTC) has fallen by more than 3% in the last 24 hours, currently trading at $59,800. Cryptocurrency trading volumes have also seen a decline of nearly 12%, amounting to $40 billion.
Recent data from CoinGlass indicates that traders are actively closing out their positions. In the past four hours alone, traders have sold off assets worth over $115 million, with long positions making up $96.70 million of that total. The majority of these liquidations were seen on the OKX crypto exchange, totaling $43.81 million.
As the BTC halving event approaches, traders are expected to make strategic moves in response to the impending reduction in miner rewards by 50%. This event is likely to limit the number of coins entering the market, a development that some Bitcoin enthusiasts view as positive.
Leading up to the halving, Bitcoin has experienced heightened volatility, compounded by investors pulling funds out of popular Bitcoin ETFs following remarks by U.S. Federal Reserve Chairman Jerome Powell regarding inflation rates.
Markus Thielen, head of research at 10x Research, points out that crypto miners started accumulating Bitcoins in January 2024 to create a supply-demand imbalance. This move led to a significant increase in BTC’s price, reaching a historic high in March.
Looking ahead, digital asset mining companies are expected to gradually sell off their accumulated coins post-halving, potentially impacting the prices of cryptocurrencies. The stage is set for a period of uncertainty and fluctuation in the crypto market as the halving event approaches.