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20.03.2024 10:33 PM
Bitcoin: Focus on halving, but bull market still in force

The cryptocurrency market is currently experiencing increased volatility as investors closely monitor how the halving of Bitcoin block rewards will affect its price.

Historically, the price of Bitcoin has surged significantly after halving events, which reduce block rewards by 50%. It is expected that the price will rise again after the fourth halving event in April. However, the current market instability raises doubts about whether this trend will persist this time.

Clear Differences from Previous Cycles

Differences from previous cycles become evident when analyzing the Bitcoin chart. The price is rising less sharply than before after halving events, causing concern among observers about the stability of the current rally. Perhaps significant price growth will not occur until a new all-time high is reached, indicating fundamental issues in the cryptocurrency market.

Although the cryptocurrency market is unstable, Bitcoin still shows some positive signs, such as maintaining a position above certain exponential moving averages, which typically indicate bullish sentiment in the market.

However, the lack of strong price growth ahead of the upcoming halving indicates that investors are not overly interested in buying BTC at the moment.

Currently, all attention is focused on the upcoming halving. Market stagnation is making investors contemplate the possible consequences. While previous halving events led to price increases for Bitcoin, the current situation looks uncertain. Market uncertainty and ongoing corrections are intensifying investor concerns.

According to the latest data, the price of Bitcoin slightly exceeds $63,000, down 1.25% over the last 24 hours. Over the past week, the cryptocurrency has fallen by 13.85%.

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Spot ETF Outflow and FOMC Decision

According to QCP Capital data, inflows into Bitcoin spot ETFs peaked on March 12, exceeding $1 billion, but have since declined along with spot price drops. On March 19, the largest net outflow of funds in a single day occurred, leading to a temporary drop in Bitcoin to $60,770, but the price then rose again above $63,000.

The firm is questioning whether this marks the beginning of daily outflows or simply position adjustments.

Focus on the Bull Market

Despite short-term fluctuations, QCP Capital asserts that the bull market in cryptocurrencies continues and predicts positive annual growth. The company expects liquidity rotation to drive Bitcoin to new highs after the halving in April.

However, the firm warns that the high level of leverage in the market could lead to short-term corrections. It recommends that investors adopt strategies such as Enhanced Sharkfin to capitalize on this situation. This strategy provides capital protection and allows for profit in the event of Bitcoin price increases.

Enhanced Sharkfin also helps mitigate the risks of sharp market corrections, making it attractive to investors. This approach is supported by market dynamics analysis and aims to profit from potential Bitcoin price increases while minimizing potential losses from price declines.

Overall, despite current uncertainty, the cryptocurrency market continues to attract investor attention. The halving in April is expected to have a significant impact on the future price dynamics of Bitcoin. Investors remain vigilant and ready to adapt their strategies according to changing market conditions.

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