Bitcoin Slumps After Reaching All-Time High
Bitcoin Hits Record High Before Slumping
Bitcoin, the popular cryptocurrency, saw a significant drop in value after reaching an all-time high on Tuesday. Investors seemed to be taking profits following the record surge, although overall sentiment remains positive leading up to the halvening event.
Large Investors Cash Out as Bitcoin Falls
Bitcoin experienced an 8% decline to $61,682 after peaking at $68,874 earlier in the day. This downward movement was attributed to major investors, known as “bitcoin whales,” selling off their holdings. Despite this, optimism prevails as expectations for another bullish phase are high ahead of the upcoming halvening event in April.
The Significance of Halvening Events
Halvening events, which reduce the number of bitcoins in circulation by half, occur approximately every four years. Historically, these events have preceded significant bull runs for Bitcoin, with notable instances in 2012, 2016, and 2020.
Bitcoin ETFs and Institutional Interest
The recent launch of a spot-based bitcoin exchange traded fund (ETF) in January fueled institutional demand for the cryptocurrency. Data from BitMex Research revealed that U.S.-based bitcoin ETFs now hold nearly 4% of all bitcoins in circulation, indicating growing interest from institutional investors.
