Bitcoin (BTC) is on the brink of a huge surge. This is largely due to the upcoming Bitcoin Halving, which is scheduled to occur next week, April 19. The halving is a significant event in the Bitcoin network where the reward for mining new blocks is halved. This in turn reduces the rate at which new bitcoins are generated. This event occurs approximately every four years and is a key feature of Bitcoin’s economic model, and why it’s remained the top cryptocurrency on the market in terms of price.
However, Bitcoin is down today in price, trading at just over $66,000 at press time. Why is BTC down, and will it rebound before the upcoming halving?. This is down from the over $71,000 level the asset was trading at in the early hours of Friday. This downturn has some investors worried, wondering why Bitcoin is dropping all of a sudden. However, most experts say that this was expected, and we can expect multiple swings in price for Bitcoin and some altcoins as the halving comes closer.
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Will Bitcoin Climb Back Over $70,000?
Once April began, Bitcoin immediately began its hike toward the $73,000 mark it hit during the bullish crypto run in March. Almost all predictions made before April revealed that this would be the case, as market sentiment grew bullish before the halving. However, the latest drop is scaring some investors, as the asset is down 5% in 24 hours.
There is no clear indication of why Bitcoin is down today. Most likely, the price may just be seeing a correction, as trading volume is up 15% in the last 24 hours. We could see the asset jump back up over the next 24 hours. Due to the impending halving though, we can predict that BTC won’t fall much lower unless an event of extreme magnitude overshadows the halving.
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According to most Bitcoin halving day predictions, BTC will see a rebound very soon, bouncing back to over $70,000. This latest drop may just be a calm before the storm. We will likely see a new all-time high for the top cryptocurrency this month once the halving event occurs. Thus, fears of the asset dropping like it did today will surely disappear.
The event will not just impact cryptocurrency, but also the precious metal market. As Bitcoin becomes more popular, Gold may see a slight tumble in price as investors see BTC as a better alternative. Hence, the event is going to be very significant in the world of alternatives to the US dollar.