Bitcoin Halving Concludes, Market Poised for Upswing, Analyst Says
Bitcoin (BTC) dominance is declining, potentially signaling a shift in the cryptocurrency market, according to analyst Michael van de Poppe. This news comes after the recent Bitcoin halving, an event that cuts the reward for mining new bitcoins in half and is expected to have a significant impact on the entire cryptocurrency market.
Crypto Market on the Move
Van de Poppe’s tweet suggests a potential market upswing following the halving, with Bitcoin dominance decreasing and altcoins potentially poised for growth. However, the market remains volatile, with some analysts like WazzCrypto expressing concerns about overvaluation.
Examining Bitcoin Halving’s Impact
The halving is expected to have a long-term bullish effect on Bitcoin’s price due to its reduced supply. However, in the short term, it could lead to increased mining costs and profitability concerns.
Environmental Efforts Toward Bitcoin Mining
PayPal is developing a platform to incentivize eco-friendly Bitcoin mining practices by rewarding miners who use less energy. Bitcoin mining consumes a significant amount of energy, raising environmental concerns.
Bitcoin as a Safe Haven
A new report by the International Monetary Fund (IMF) highlights Bitcoin’s use as a “release valve” in countries with restricted economies. The study suggests that Bitcoin adoption is higher in countries with limited access to traditional financial markets.
BlackRock’s Bitcoin ETF Leads the Pack
BlackRock’s iShares Bitcoin Trust ETF (IBIT) has seen 69 consecutive days of inflows, nearing a record and potentially entering the top 10 list of most popular ETFs. This strong investor interest in IBIT suggests growing adoption of Bitcoin ETFs.
Grayscale Struggles, Announces Mini-Bitcoin ETF
Grayscale’s Bitcoin Trust (GBTC) has experienced significant outflows due to its high fees compared to competitors. To address this, Grayscale plans to launch a “Mini Bitcoin ETF” with a substantially lower fee of 0.15%.
Investor Concerns
Despite the halving, the 11th consecutive week of outflows from blockchain equities suggests investor concerns about mining profitability. Overall digital asset investments also witnessed outflows for the second week, potentially due to expectations of continued high interest rates.
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