Is crypto dead as in an unexpected twist of events, the value of Bitcoin dipped below the much-anticipated $40,000 mark, plummeting to a low of $38,700 before making a slight recovery to $38,900. This sudden downturn has left investors in a state of anticipation as they speculate on Bitcoin’s potential resurgence or further losses.
Renowned market analyst, Joe Parys, offered his insights on the prevailing market dynamics that have left many investors on edge. “There’s a widespread belief that we may be in for lower prices,” said Parys. Notwithstanding the bleak outlook, he noted that Bitcoin had managed to sustain the $40,000 mark, a trend he believed would warrant further examination.
A key point of discussion is the escalating pressure on Bitcoin’s price, which a majority of market participants attribute to investors departing from the Grayscale Bitcoin Trust in light of its conversion to a spot exchange-traded fund (ETF). “The future of Bitcoin largely hangs in the balance due to the recent outflows,” explained Parys. “If we witness a surge of Bitcoin moving out of Grayscale and into other ETFs, or simply a trend of buying the rumor and selling the news, we might brace ourselves for even lower prices.”
A recent estimation from a JPMorgan analyst has further fueled the market’s anxiety, projecting potential outflows of up to $3 billion from GBTC, a move which could intensify the pressure on Bitcoin’s price in the forthcoming weeks.
As the Bitcoin market grapples with the effects of outflows from GBTC and inflows to other spot Bitcoin ETFs, a significant event on the crypto calendar looms in the background — the upcoming Bitcoin reward halving. Parys linked this future event to potential market speculations, stating, “The Bitcoin reward to miners will be halved around April 19, 2024. This, to me, is likely to spur new potential speculation.”
In the broader crypto sphere, the downturn of Bitcoin has sent ripples across the market, with other major cryptocurrencies including Ethereum and Solana recording significant losses of about 7.6% and over 10% respectively within the past 24 hours.Now you know is crypto dead or not.