With Bitcoin's fourth halving event projected to occur in less than 20 days, the market has experienced a sharp decline despite widespread bullish sentiment. Bitcoin Leads Market Downturn, Liquidations Reach $140 Million in an Hour On April 2, Bitcoin dropped from $69,000 to below $67,000 within 20 minutes, and is currently trading at $66,673, marking a 5
With Bitcoin's fourth halving event projected to occur in less than 20 days, the market has experienced a sharp decline despite widespread bullish sentiment.
Bitcoin Leads Market Downturn, Liquidations Reach $140 Million in an Hour
On April 2, Bitcoin dropped from $69,000 to below $67,000 within 20 minutes, and is currently trading at $66,673, marking a 5.64% drop over the past 24 hours. Ethereum fell below $3,400, currently trading at $3,362, with a 6.91% decline in the same period. BNB, SOL, and AVAX experienced declines of 7.0%, 9.1%, and 10.8%, respectively.
According to Coinglass data, liquidations across the market reached $162 million in the past hour, with $146 million in long positions liquidated. Over the past 24 hours, $473 million in liquidations occurred, of which $402 million were long positions.
ETF Outflows a Major Contributor
The community attributes the recent Bitcoin decline primarily to significant net outflows from ETFs.
On April 2, HODL15Capital reported that Bitcoin spot ETFs experienced a combined net outflow of $88 million in the previous day, with IBIT recording a $164 million inflow and Grayscale GBTC seeing a $303 million outflow. According to Farside Investors, ARKB also experienced its first net outflow, amounting to $300,000.
Furthermore, FactSet data shows that Grayscale Bitcoin Trust, iShares Bitcoin Trust, and Fidelity Wise Origin Bitcoin Fund all declined by approximately 3% yesterday, potentially contributing to the overall market weakness.
Bullish Sentiment Remains Elevated, April Price Target of $84,000
Despite the widespread declines, 24-hour losses have generally remained within the 5-10% range, indicating that overall bullish market sentiment has not been significantly impacted. Alternative data shows that the Crypto Fear & Greed Index stands at 79 today, down from 81 last week, indicating that the market remains in a state of extreme greed without signs of cooling down.
The community widely anticipates an upward trend in the cryptocurrency market in April.
Halving: A Catalyst for Growth
The upcoming halving is a key bullish factor. Last week, Laurent Benayoun, CEO of Acheron Trading, stated that Bitcoin's price could rise by another 150% during the current bull market cycle, with a potential peak of $180,000, driven by factors such as the introduction of spot Bitcoin ETFs and the supply reduction resulting from the halving.
Markus Thielen, an analyst at Matrixport, expressed optimism about April's market outlook in a March 29 publication. He predicts that Bitcoin, which has seen seven consecutive months of significant gains, will continue its upward trajectory in April, potentially reaching $84,000, a 12% increase from its current $70,000 price point.
Three Arrows Capital Co-founder Bullish on April
Zhu Su, co-founder of Three Arrows Capital, recently commented on social media, "I genuinely don't understand the bear case here, structurally April is super bullish, BTC halving incoming, ETH ETF incoming, normies waking up after long hibernation, no NFT at Art Basel this year, we are still early."
As Bitcoin's halving approaches, the market has experienced a significant downturn, but bullish sentiment remains high, and experts are generally optimistic about the cryptocurrency market in April. The halving serves as a clear catalyst for growth, while ETF outflows have been a major factor in the recent decline. Despite the overall dip, market sentiment has not diminished, and April is expected to bring continued gains in the cryptocurrency space.
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