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Three Days Before Bitcoin Halving, BTC Drops Further

Bitcoin (BTC) investors have to start asking themselves if the predictions about Bitcoin halving are wrong and if Bitcoin is not going to benefit from the event.

On Tuesday morning, Bitcoin dropped 4.39%, which pulled the token down to $63,134 (BTC/USD). That is the lowest that BTC’s price has been in a week, and almost the lowest it has been in the last 30 days.

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The stage is not being set for a high level of investor confidence in Bitcoin leading into the halving. In just three days, that event should take place and make bitcoins twice as difficult to mine. That should theoretically increase the value and the rarity of new bitcoins, as it has in the past, but we are in an unstable market with high inflation that only looks to be getting worse, if recent numbers are any indication.

Bitcoin Is Being Held Back

Many industry analysts expected Bitcoin to be soaring by this point, revving up for a major event that would spur its value and give it a push toward $100,000. The predictions about reaching that historic level far beyond its all-time high have dried up recently. No one expects Bitcoin to reach that high very soon anymore.

What is causing Bitcoin to slow down so much and go through a downturn at what should be a historic moment attached to a bullish trend?

The blame can likely be placed squarely on inflation and the resulting economy. Inflation is high and getting worse, according to numbers released earlier this month. From month to month, US inflation has only gotten higher, and the expectation at this point is that it will continue to do so.

It is risky to invest in unstable cryptocurrency when that is the case, and low consumer confidence in Bitcoin is causing many investors to pull out. From most indications, it looks like investors are worried that Bitcoin will plummet, and they are selling off their tokens before things get worse.

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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