Bitcoin is going through a topsy-turvy phase as the so-called Bitcoin “halving” event is on the horizon. The top cryptocurrency jumped Monday after Hong Kong approved spot Bitcoin ETFs, but it fell again soon after. The cryptocurrency continued its decline on Tuesday morning, with a drop of more than 4% in a day, to less than $63,000.
The sentiment has spread across the crypto market. The second-largest cryptocurrency, Ether, was trading just above $3,000 on Tuesday after experiencing a more than 4% decline in the past 24 hours. The situation with Solana was worse, as it fell 12% in a day and almost 25% in a week to hover around $132. The top meme coin, Doge, declined more than 5% Tuesday, to $0.15, according to CoinMarketCap.
Bitcoin volatility will continue for some time
Bitcoin will undergo the halving phase around April 19, cutting the current mining rate to 3.125 Bitcoin from 6.25 Bitcoin. This is an integral part of the Bitcoin blockchain system, which creates a monetary system that controls inflation. While this major event has been projected to possibly increase Bitcoin’s price, right now, Bitcoin’s price has been increasingly volatile, and will likely continue to be going into the halving.
Meanwhile, the founder of 10X Research, Markus Thielen, has also turned bearish on Bitcoin price amid fading chances of Fed rate cuts and rising bond yields, CoinDesk reports.
Bitcoin ETFs are having a hard time
Spot Bitcoin ETFs that were driving Bitcoin to another level in the past month are now seeing massive outflows these days. Over the past two days, only BlackRock’s iShares Bitcoin Trust (IBIT) has seen inflows, while all other Bitcoin ETFs have seen zero or lower inflows, according to Farside. The iShares Bitcoin Trust (IBIT) recorded a net inflow of $73.4 million on April 15, a decline from the previous day’s inflow of $111.1 million. The Grayscale Bitcoin Trust (GBTC), which has continuously seen outflows for a month, experienced $110.1 million in outflows yesterday.