In the volatile world of cryptocurrency, all eyes are on Bitcoin (BTC) as the pioneer digital currency edges closer to its highly anticipated halving event in April. Meanwhile, crypto analyst Crypto Tony has sent shock waves through the community with a tweet predicting a potential price dip to $38,000 for BTC in the lead-up to the halving.
$BTC / $USD – Update
Mid range at the moment, but $38,000 i expect as we grind towards the halving in April legends pic.twitter.com/n3t3a33kXW
— Crypto Tony (@CryptoTony__) January 21, 2024
As of the latest update, the current price of Bitcoin stands at $41,770, experiencing a modest 0.62% increase in the last 24 hours. However, the cryptocurrency has witnessed a 5.01% dip over the past 30 days, reflecting the ongoing fluctuations in the market. The trading volume for Bitcoin has also seen a significant decrease, plummeting by 56.12% in the last 24 hours to reach $9,930,593,235.
Notably, CoinGlass data indicates that in the past 24 hours alone, there has been $2.54 million worth of liquidations in BTC. This includes $628.48K in long liquidations and $1.91 million in short liquidations, underlining the current market’s sensitivity to fluctuations. Crypto enthusiasts and investors are closely monitoring these developments as the countdown to the Bitcoin halving continues.
Bitcoin halving buzz
As previously reported by U.Today, Glassnode, a prominent on-chain analytics platform, estimates that the Bitcoin halving is approximately 97 days away. Bitcoin halving is a predetermined event that occurs roughly every four years or after 210,000 blocks have been mined. During this process, the reward that miners receive for validating transactions is halved.
This scarcity mechanism is ingrained in Bitcoin’s protocol, intended to control the coin’s inflation and maintain its value over time. This impending event is considered a significant catalyst for the Bitcoin price, drawing from historical price patterns where previous halving events have coincided with substantial price surges.
Despite Crypto Tony’s projection of a dip to $38,000, it is important to note that this prediction pertains to pre-halving price levels. Looking beyond the halving, numerous analysts anticipate a price rally for the leading cryptocurrency. Analysts anticipate that the reduction in mining rewards during halving events creates a supply shock, leading to increased demand and subsequently driving up the price of Bitcoin.
