The Bitcoin fever reaches its peak as the halving approaches!

In an atmosphere of widespread euphoria, Bitcoin soars from one record to another, reaching the symbolic threshold of $71,000 this April 1, 2024. However, this meteoric rise hid underlying forces that eventually reshuffled the deck. The feverish anticipation around the upcoming halving, set for April 21, had fueled the wildest speculations in the markets. But, Bitcoin has just experienced a sudden drop, reminding everyone of the intrinsic volatility of this cryptocurrency.

The Buzz in the Crypto Market

The crypto market is boiling over, and the media hype around the imminent Bitcoin halving only fans the flames of general enthusiasm. The fear and greed index has tipped into the extreme greed zone, registering a score of 79. The total market capitalization has jumped 2.1% to reach $2.827 trillion in only 24 hours. Meanwhile, massive liquidations exceed $108 million, reflecting the volcanic nature of the trades. Unquestionably, traders are positioning themselves frantically in anticipation of the upcoming fluctuations.

Bets on the Post-Halving Bitcoin

Despite the palpable euphoria, savvy investors keep a watchful eye on the crucial macroeconomic data forthcoming. Indeed, the much-awaited speech on inflation, delivered last week, could have tempered the ambient fervor. However, the rather optimistic comments from the Fed chairman then suggested a favorable outcome for the American economy. According to Powell, it was “certainly possible” to avoid a recession. But speculation runs rampant on the consequences of the halving on Bitcoin’s supply and demand.

Although the halving is no longer a novelty, its potential impact on the price of Bitcoin remains a perpetual source of heated debate. Some experts predict a spectacular surge following the drastic reduction in the supply of new Bitcoin. Others, more cautious, speak of a typical financial market scenario of “buy the rumor, sell the news.” In any case, all eyes are glued to the cryptocurrency exchanges in anticipation of the fateful day. Exchange giants such as Coinbase and Binance have certainly planned special trading operations for the occasion.

In this unprecedented frenzy, Bitcoin captivates attention like rarely before. But the recent drop serves as a reminder that the structural volatility of the crypto market could quickly deflate the surrounding euphoria. Only the most seasoned and patient investors will come out on top in the game of this historic halving. Without a doubt, new surprises await us in the coming weeks on the tumultuous cryptocurrency markets.