Crypto.com CEO Warns Of Further BTC Selloff During Bitcoin Halving
As the countdown to the Bitcoin Halving event draws closer, market sentiment remains divided between optimism and caution. Historically, the event has been associated with bullish rallies in Bitcoin prices.
However, the current landscape presents a unique scenario, with Bitcoin recently reaching record highs above $73,000 in March, fueled by the success of the U.S. Spot Bitcoin ETF. This unprecedented price surge introduces uncertainties into the equation, challenging the conventional wisdom surrounding the Halving event’s impact on Bitcoin prices.
Meanwhile, in a recent interview with Bloomberg Television, Kris Marszalek, CEO of Crypto.com, shared his perspective on the impending Bitcoin Halving event. While acknowledging the historical significance of the Halving in driving long-term price appreciation, Marszalek cautioned against overlooking short-term market dynamics.
Notably, the CEO of the leading crypto exchange highlighted the possibility of Bitcoin selloffs leading up to the event, attributing them to the “buy-the-rumor, sell-the-news” trading pattern commonly observed in financial markets. Despite short-term uncertainties, Marszalek expressed confidence in Halving’s positive long-term implications for the crypto market, anticipating significant market activity in the six months following the event.
Potential Impact & Analysts’ Perspectives
The BTC Halving event, scheduled for later this week, is expected to reduce miners’ rewards from 900 to 450 BTC per day and is poised to reshape the dynamics of the crypto mining ecosystem. As miners compete for reduced rewards, the event is expected to exert upward pressure on Bitcoin prices over time.
However, the immediate aftermath may witness short-term volatility, driven by market speculation and trading sentiments. Besides, Marszalek’s insights underscore the nuanced nature of the crypto market, where short-term fluctuations coexist with long-term growth prospects.
Meanwhile, despite Marszalek’s warnings, some market analysts attribute the recent downturn in the BTC price to the pre-retracement phase ahead of the Halving event. In addition, this perspective suggests that the market correction is part of a broader trend rather than solely influenced by imminent selling pressures. Besides, the recent approval of the Bitcoin and Ethereum ETF in Hong Kong has also bolstered the sentiment of the crypto market enthusiasts.
Notably, the BTC price was down nearly 5% to $63,533.28 during writing, with its trading volume staying near the flat line at $43.63 billion. Over the last 24 hours, the BTC price saw a high of $66,878.65 and a low of $61,797.04, reflecting the highly volatile scenario in the crypto market.
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