Bitcoin’s price began to fall after reaching a 2022 high of $48K, and the entire market seemed to follow suit. Bitcoin is currently trading at around $43.3K, and several altcoins have seen their value plummet in recent days. Although some coins had green candles at the time of writing, the recent decline following a slight climb could imply a continuation of the market’s sideways behavior.
Are Bears Still in Charge?
In late March, the crypto market had a good month when BTC hit a three-month high of almost $48,000. Altcoins followed suit, with many of them, including ETH, reaching similar three-month highs.
However, April began to be a little more sluggish, and bitcoin began to lose value. It initially regained most of its losses but dropped to slightly over $43K earlier today.
Altcoins, as is customary, followed suit, with the majority of them experiencing even greater price drops. Solana, Polkadot, Avalanche, MATIC, ATOM, and LINK have all lost roughly 10% daily, with Ethereum down to $3,200 and Binance Coin at $425.
Bitcoin (BTC), the whole crypto sector, and the S&P 500 index are all correcting. It emphasizes the close ties that exist between the two industries.
Despite the setback, institutional investors appear to be continuing to buy, indicating that they are still bullish in the long run. Terra took advantage of the price drop to purchase an additional 5,040 Bitcoin, bringing its total holdings to 35,768.
Terra wasn’t the only one taking part in this adventure. Through its subsidiary MacroStrategy, MicroStrategy, the treasury with the greatest Bitcoin reserves, raised its holdings by 4,197 Bitcoin.
The market had grown accustomed to a macro price peak occurring once every four years, namely the year following Bitcoin’s block subsidy halving events.
Price action is now less predictable, and while the reasons influencing it are numerous and varied, this does not necessarily suggest that bulls will catch a break at a later stage in the present cycle.
The next Bitcoin impulse wave may not occur until May 2024, which coincides almost exactly with the next block subsidy halving.
Regardless of expectations, recent market statistics indicate that we may still be in the midst of crypto winter. Many investors have profited in recent days, even though the market has begun a rise in the midst of a halving phase. However, the recent price drops have resulted in some disappointments. Amateur traders may begin to sell their assets during these moments, resulting in more price drops.