Bitcoin (BTC) Sudden 10% Drop – Is It Still Good To Buy BTC?

Since reaching a new all-time high of $73,083 on March 13, Bitcoin (BTC) has massively dropped by over 10% to $65,300 as of Sunday Morning.

Sophia Cruz•Monday, March 18, 2024•1 min read

Since reaching a new all-time high of $73,083 on March 13, Bitcoin (BTC) has massively dropped by over 10% to $65,300 as of Sunday Morning.

Several other tokens in the Bitcoin market also experienced declines. According to data from CoinDesk, Ethereum (ETH) went down by 6.43% to $3,4888, while Binance (BNB) coin dropped by 8% to $564, and Solana (SOL) went down by 4% to $184.

Bitcoin’s (BTC) recent decline is related to people taking profits and releasing the U.S. inflation data. In this case, further declines are expected.

In addition, analysts predict a decrease in Bitcoin’s price in the coming weeks before making a potential rebound. CoinDesk’s senior market expert Alex Kuptsikevich stated that profit-taking by investors adds up to the uncertainty that there will be sufficient demand at BTC’s current price level.

Swissblock, a firm that specializes in digital asset analysis, reports that Bitcoin’s (BTC) price has massively increased since January without a discernible catalyst. This means that BTC would need a cooling-off period and that “nothing rallies in a straight line”.

Meanwhile, despite Bitcoin’s (BTC) sudden fluctuation, the Bitcoin halving event is still fast approaching. There’s much anticipation among crypto investors and miners. The Bitcoin halving event occurs every four years and is a significant milestone that reduces miners’ rewards in half.

Although the Bitcoin halving event brings a massive change in the ecosystem, miners will have their rewards reduced from 6.25 BTC per block to just 3.125 BTC per block. This decrease in block rewards still has a substantial impact on miners’ gains especially those with high operational costs.

Overall, the halving event brings both challenges and opportunities for miners. Even though the halving event will reduce block rewards, factors such as Bitcoin’s price surge and higher transaction fees could mitigate revenue losses.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.