Bitcoin’s value plummets to $65k, resulting in nearly $900m worth of liquidations in the crypto market.
Bitcoin has experienced a decline of nearly 5%, dropping to $65,000 for the first time in a week, as the overall market capitalization of cryptocurrencies decreased by 7%. Ethereum, the largest altcoin, also saw a decrease in price, dropping by 8.5% within a 24-hour period. Coinglass reports that over 277,000 traders liquidated assets worth $877.79 million in the same 24-hour period.
The decline in Bitcoin’s price can be attributed to a pullback before the halving event and miner capitulation. It is widely anticipated that the halving will result in a larger bull cycle for Bitcoin. Pullbacks usually occur when traders begin to take profits close to the halving date, expecting a short-term peak before the event. This is a familiar pattern observed before the last halving in 2020, similar to the recent price movements.
In anticipation of the halving, many miners have stopped mining Bitcoin due to increased difficulty and operational costs. This week, the difficulty of Bitcoin mining reached a record high. Bitcoin’s network has built-in difficulty adjustments to maintain a consistent block time, which can compensate for changes in total hashing power. When miners capitulate, the total hashing power decreases, prompting the network to adjust the difficulty downward. This makes mining more accessible and potentially more profitable for the remaining miners.
However, the recent liquidation may also be a result of investor skepticism. Maraton Digital has predicted that this year’s halving may not have a significant impact on Bitcoin’s price, as the token has already reached its peak early due to significant inflows from Bitcoin ETFs.
In other news, it has been reported that Hong Kong is set to approve the first Bitcoin and Ethereum ETFs. Stay updated by following us on Google News.
