Why is Bitcoin falling after the halving?

Despite numerous assurances that the price of Bitcoin will soar after the next Halving, the crypto market is experiencing the opposite situation.

After Bitcoin made a new high of $73,000 in March 2024, the price has fallen significantly and is currently trading at $57,000 per coin.

Before the Halving, numerous forecasts were published on the Internet, predicting an increase in the price of the main cryptocurrency to 100,000 or even 150,000 dollars.

Why did the cryptocurrency fail to live up to expectations and begin to decline, dragging the entire cryptocurrency market down with it?

 

As previously noted, the Bitcoin price doesn't always begin to rise immediately after a reduction in miner payouts. As previous Halvings have shown, an upward trend begins long before the event, followed by a pullback, and only then does the price rise again.

Therefore, a drop in Bitcoin's price after the Halving is entirely expected, and a new upward trend will not begin until the summer of 2024.

Additional factors pushing Bitcoin's price down today

In addition to the predicted pullback, there are a number of other factors that are driving the current downward trend in the cryptocurrency market.

Gold price decline – the precious metal has fallen more than 4% recently, and as is well known, there is a correlation between the price of gold and Bitcoin .

Increased supply – after the downtrend began, many investors began to sell off their cryptocurrency holdings, further exacerbating the decline.

A bill to restrict cryptocurrency circulation is being considered in Russia. If passed, it would significantly impact the liquidity of the cryptocurrency market.

Fed) left the US dollar interest rate unchanged at 5.5%. This dampened investor interest in the cryptocurrency market.

What to expect from Bitcoin in the near future

Most experts agree that cryptocurrency will decline in the coming month, with Bitcoin likely falling to $50,000. After that, a new rally will begin, opening the door to new highs.

If you don't want to wait for a new uptrend, there is an opportunity to profit from falling prices using contracts for difference.

You can open unsecured short trades on Bitcoin and other cryptocurrencies with the following brokers: https://time-forex.com/kriptovaluty/brokery-kriptovalut

Don't miss your chance while the downtrend is still strong and can bring significant profits.