Key Points
- Samson Mow, a well-known Bitcoin supporter, has shed light on the reasons behind the recent crypto market crash.
- Mow identified the fear of war, lack of understanding of Bitcoin halving, and the wait-and-see approach of investors as contributing factors.
Samson Mow, a prominent supporter of Bitcoin (BTC), has provided insight into the recent downturn in the cryptocurrency market.
In a recent post, Mow explained that investors scaled back their crypto holdings over the weekend due to the fear of war in the Middle East. He pointed out that Bitcoin was the only asset that traded globally on weekends.
Mow’s Analysis of Bitcoin Price Dip
Furthermore, Mow emphasized that many market participants don’t fully understand the implications of the Bitcoin halving event. For those who do, there’s uncertainty about how it will impact Bitcoin’s price.
The Bitcoin halving event is significant for both the cryptocurrency and miners. As the block reward decreases, miners’ incentives also decrease, which could potentially affect network security and hash rate. This has led to concerns about the sustainability of mining operations.
Mow suggests that investors have adopted a cautious approach, holding off on investment decisions until there’s more clarity about the market’s direction post-halving. This, he believes, has contributed to the recent market crash.
Despite these concerns, Mow is of the view that the halving event will trigger a massive supply shock in the market. He believes investors are closely watching the inflows and demand of the newly introduced spot Bitcoin Exchange-Traded Fund (ETF) in the United States, and should therefore understand the implications of the halving event on Bitcoin’s price.
Mow also highlighted the potential launch of a spot ETF in Hong Kong as another significant event that could influence Bitcoin’s price. According to previous reports, the Hong Kong Securities Regulatory Commission approved the first spot Bitcoin ETF on April 15. Mow believes that investors who are still accumulating Bitcoin are the lion amidst a herd of sheep.
Bitcoin’s Price Fluctuations
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 euphoria was short-lived as rising US Treasury yields impacted market sentiment, pushing Bitcoin back to $62,500.
At the time of writing, Bitcoin is still experiencing a downturn as it trades at $63,282, representing a decrease of 4.49% in the last 24 hours. However, the trading volume is slightly up by 1.2% to $43.97 billion. The Bitcoin price forecast sentiment is currently pessimistic, with the Fear & Greed Index reading 65 (Greed).
Kris Marszalek, CEO of Crypto.com, remains bullish on Bitcoin. He suggests that Bitcoin could continue on its downward movement up to the halving event. However, he believes the event could cause the price of the leading cryptocurrency to climb to new heights.
“I expect pretty decent action within the six months following the Bitcoin halving,” Marszalek has stated.
