Bitcoin nears all-time high two weeks before halving


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Days of high volatility and volume are expected for both Bitcoin (BTC) and other cryptocurrencies.

Bitcoin has once again surpassed $72,000, a price not seen since mid-March. This suggests a potential mini rally leading up to the halving event on April 20, just two weeks away.

The approval of Bitcoin ETFs in the United States earlier this year has been a major bullish factor for the price so far in 2024. Analyzing Bitcoin’s performance in the coming days will be crucial for future projections.

According to investment and financial analysis firm Santiment, “Bitcoin ETF volume has not declined four weeks after Bitcoin’s all-time high. Trading activity across GBTC, IBIT, FBTC, ARKB, BTCO, BITB, and HODL [list of Bitcoin ETF tickers] remains significantly higher than the inflection point observed in late February, which followed an influx of individual investors.”

The firm further states, “Elevated ETF activity is likely to continue through April 19th.” However, other analysts believe a drop in ETF and on-chain volume might occur after the halving. This is because some investors may take profits, potentially leading to a price dip. However, supply and demand dynamics could still push prices upwards.

Other digital currencies are also experiencing growth. ENA, the token of the Athena platform, led the price increase over the past seven days, followed by Nervos Network and Bitget Token.

Bitcoin Miners Brace for Cost Shift

The halving season is approaching, bringing increased focus on miners’ preparations.

Less than two weeks remain before the amount of ‘new’ Bitcoins unlocked per mined block is cut in half to 3,125 BTC due to the halving.

Miners have increased sales this year, and analysts anticipate a period of adjustment. It’s important to note that mining costs have doubled compared to 2020. However, some analysts also predict a doubling of Bitcoin prices by the end of the month, post-halving.

A lack of further uptrends could potentially impact retail participants with less tolerance for market fluctuations. However, some investors believe revenue streams might be preserved after the halving due to the operation of Bitcoin Originals and rising transaction fees.

BTC Complexity Level and Hash Rate Set Records

Bitcoin network fundamentals are taking center stage.

Mining difficulty, already near record highs, is expected to increase by 2% on April 11th, surpassing 85 billion difficulty points for the first time.

The output of known mining pools is currently at its near-peak historical level.

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