Key Points
- The total cryptocurrency market cap has decreased by 2.4 percent ahead of the anticipated Bitcoin (BTC) halving in 2024.
- Crypto whales have accumulated over 27,700 Bitcoins, worth over $1.7 billion, despite the market’s current state.
The overall value of the cryptocurrency market has seen a 2.4 percent decrease in the last 24 hours, reaching a total of about $2.36 trillion.
This comes ahead of the highly anticipated 2024 halving of Bitcoin (BTC).
Market Analysis
Analysts from JPMorgan Chase & Co (NYSE: JPM) have noted a short-term weakness post-Bitcoin halving, after a strong first quarter.
They noted on Wednesday that the Bitcoin price could trigger another crypto landslide due to the market still being in overbought conditions.
This is based on their analysis of the Open Interest in BTC futures.
Data analysis from CryptoQuant shows that crypto whales have accumulated more than 27,700 Bitcoins, worth over $1.7 billion, in the past few days.
This is despite the continued market dump by Grayscale Investments’ GBTC.
It shows that long-term investors remain steadfast, even in the face of market instability.
Halving Impact
The upcoming halving will reduce the daily Bitcoin supply from 900 to 450 coins.
With the increasing demand for Bitcoin from institutional investors, a super cycle could be on the horizon.
The approval of spot Bitcoin and Ethereum ETFs in Hong Kong is expected to add to the existing buying pressure.
Moreover, spot Bitcoin ETFs in the United States have already seen significant success in their first few months.
Bitcoin price has repeatedly tested the support level around $61K in recent weeks after reaching a new all-time high last month.
Bitcoin dominance has been consuming the altcoin market recently, standing at around 55.46 percent as of Thursday.
However, crypto analyst Ali Martinez believes that Bitcoin price must defend the support level of around $61k to avoid a drop towards the next major support of around $56,200.
If Bitcoin price rebounds from the current levels amid the upcoming halving, a rally towards a new all-time high will be inevitable.
Market Shift
With the current volatility in the crypto market, many traders have sought refuge in the stablecoins sector.
Data from Coingecko shows that the stablecoins industry has a daily average trading volume of about $88.5 billion out of the $117 billion for the entire industry.
Market intelligence platform Santiment concluded that crypto traders have shifted from a bullish narrative to bearish sentiments.
However, Santiment noted that the significant decline in FOMO (fear of missing out) combined with an increase in FUD is a promising indicator for an imminent crypto recovery.
