Certain Bitcoin fundamentals suggest the is well primed for further growth in . However, its recent price decline has sparked concerns about the reason for this downward trend despite everything pointing to a sustained upward movement.
Bitcoin Supply On Exchanges Hit 4-Year Low
from the on-chain analysis platform CryptoQuant highlighted that the has seen nearly a 40% drop in 4 years and is reducing ahead of the . This underscores the bullish sentiment around the as the decreasing supply on supply suggests that most investors have no plans to sell their holdings anytime soon.
The CryptoQuant data also noted that is outpacing its supply, which is said to have been the prevailing trend since 2020. This development offers a bullish narrative as it can continue to increase Bitcoin’s value since “scarcity boosts perceived value.” This trend is also expected to be sustained once the Halving occurs since miners’ supply .
Interestingly, the imbalance between Bitcoin’s demand and supply has led crypto analysts like MacronautBTC to believe that BTC’s price could rise to as high as $237,000. As such, there are still high expectations for Bitcoin despite the crypto token hitting a of $73,750.
Why Bitcoin’s Price Is Crashing
has different reasons why Bitcoin’s price is crashing despite its strong fundamentals. The first reason he alluded to was the fact that crypto traders in the look to be overleveraged, possibly because greed seems set to be setting in with traders deploying more capital in anticipation of further price surges.
Kruger mentioned that the ETH could also be dragging the market down with the hopes of the SEC (Securities and Exchange Commission) approving the waning. Bitcoinist recently reported that the approval odds for these investment funds have plummeted immensely in the past few months, dropping to an alarming 35%.
The third reason that Kruger mentioned is the negative , which have become a trend lately. Interest in these Bitcoin funds has cooled off, with investors opting to take profit instead. On March 19, BitMEX Research that these ETFs saw a record net outflow of $326m.
Crypto trader and analyst Rekt Capital also suggested that Bitcoin is already in the ‘Final Pre-Halving Retrace.’ Therefore, significant price corrections can be expected ahead of the Halving event, which is set to take place in April.
At the time of writing, Bitcoin is trading at around $63,000, down in the last 24 hours, according to from CoinMarketCap.
BTC rises above $64,000 | Source:
