Bitcoin has shown growth for the seventh consecutive month. Analysts delve into the future of this cryptocurrency in April, dissecting key factors influencing the crypto market and potential price changes for crypto assets.
March Milestones
In March, Bitcoin hit a new record high of $73.5k, marking a 7% increase over the previous peak in 2021 recorded on March 12. Although the rate briefly dipped to $61k, it rebounded to $70k by month-end.
Impressive Growth
March witnessed a significant 16.8% growth for Bitcoin, with the first quarter of 2024 boasting a staggering 68% surge. This marks the seventh consecutive month of positive dynamics, echoing the success of 2012.
April Correction
April commenced with a rate correction, as Bitcoin’s value dipped below $69k, nearing the previous cycle’s peak reached in November 2021. By April 2, the price had dropped to $66k.
Early Peak
In the current cycle, Bitcoin achieved its peak ahead of the upcoming halving—a planned reduction in new coin issuance. This early peak in four-year cycles is unprecedented, with demand for American spot ETFs for Bitcoin playing a significant role, managing approximately $60 billion in Bitcoins since January.
Influential Factors
Key factors influencing Bitcoin’s rate include the halving, the US Federal Reserve’s monetary policy, and capital influx into spot Bitcoin ETFs. While the halving typically boosts the market, its impact in 2024 was anticipated in advance.
Halving Details
Following April’s halving, the block reward in the Bitcoin blockchain will decrease from 6.25 to 3.125 BTC. This event recurs every 210,000 blocks, with the next one expected at block 840000.
Market Expectations
Analysts anticipate a potential correction post-halving due to decreased hash rate and its impact on other crypto assets. However, market conditions shaped by American spot ETFs for Bitcoin may mitigate prolonged corrections.
Price Projections
Bitcoin’s price may fluctuate around $70k with surges to $73k or drops to $65k, according to analysts. New record highs or crashes are not anticipated in April.
Upcoming Events
A correction to $66k is possible leading up to April 8, coinciding with speeches by the chairman of the US Securities and Exchange Commission, which could influence market regulation and Bitcoin’s rate.
Market Outlook
Expectations for significant cryptocurrency market growth in the coming month are low due to liquidity constraints and anticipation of the Fed’s key rate actions. Potential regulatory changes in the European Union and investigations into the Ethereum Foundation’s activities further influence market sentiment.
