Key Points
- Bitcoin may experience increased selling pressure ahead of the 2024 halving, according to Crypto.com CEO Kris Marszalek.
- Despite price volatility, Bitcoin’s market dominance has surged to a three-year high of 55%.
The 2024 Bitcoin halving, scheduled for around April 20, could potentially lead to an increase in Bitcoin selling. In a recent interview with Bloomberg, Kris Marszalek, the CEO of Crypto.com, suggested that Bitcoin might continue to face selling pressure leading up to the halving event.
On Monday, Bitcoin’s price surged to $67,000 during Asian trading hours, following the approval of spot Bitcoin ETFs in Hong Kong. However, this spike was short-lived as rising US Treasury yields negatively impacted market sentiment, causing Bitcoin’s price to drop back to $62,500.
Impact of Bitcoin Halving
Marszalek believes that the ‘buy-the-rumor, sell-the-news’ trading strategy could lead to more selling. However, he also stated that the 2024 Bitcoin halving should have a net positive impact on Bitcoin’s price in the long term. He expects significant activity in the six months following the halving.
The Bitcoin halving event will cut mining rewards in half, posing a significant challenge to Bitcoin miners. Estimates suggest that miners may offload over $5 billion worth of Bitcoin after the fourth halving to cover higher operational costs and to avoid further revenue losses.
Bitcoin miners have been accumulating Bitcoin and upgrading their equipment for months in preparation for the halving event, which will require more computational resources.
Bitcoin’s Market Dominance
Despite the price volatility, Bitcoin’s grip on the broader crypto market continues to strengthen. Recent reports indicate that Bitcoin’s market dominance has reached a three-year high of 55%. This increase is largely attributed to strong inflows into spot Bitcoin ETFs since their launch three months ago.
US spot ETFs, including those from BlackRock Inc and Fidelity Investments, have collectively amassed around $56 billion in assets since their launch three months ago, marking one of the most successful debuts for a fund category to date.
However, inflows into Bitcoin ETFs have slowed in recent weeks. Despite this, on-chain accumulation by Bitcoin whales remains high.
