Amidst a market correction, Bitcoin, Ethereum, and Dogecoin observe a decline, with an analyst foreseeing forthcoming record peaks for the premier cryptocurrency as its halving event approaches. Last week witnessed Bitcoin's annualized 30-day historical volatility soaring to nearly 60%, eclipsing ether's realized volatility by almost 10 percentage points, marking the most substantial volatility differential in at least a year, as per data from Kaiko, headquartered in Paris. Historical volatility functions as an indicator of the magnitude of price fluctuations noted over a specific timeframe.
The impending Bitcoin blockchain reward halving stands as a pivotal occurrence recurring every four years, poised to reduce the rate of Bitcoin emission per block by half, potentially sparking heightened volatility in the cryptocurrency domain.
Set for April 21, this event will halve the reward allotted to miners per block to 3.125 BTC from the current 6.25 BTC. This halving will effectively halve miners' earnings, presently approximated at $26 billion annually, in line with ByteTree's assessments.
The global cryptocurrency market capitalization presently registers at $2.69 trillion, depicting a 1.63% upsurge in the preceding 24 hours.
The S&P 500 concluded on a downturn, sliding by 0.2% to hit 5,243.77. Conversely, the Nasdaq Composite saw a marginal uptick of 0.11%, culminating at 16,396.83. Concurrently, the Dow Jones Industrial Average also experienced a dip at the commencement of the second quarter, with traders evaluating fresh U.S. inflation data and expressing apprehensions regarding a possible deceleration in the market surge.
Investor attention is riveted on the Federal Reserve's stance toward interest rate reductions and achieving the 2% inflation target.
Federal Reserve Chair Jerome Powell averred on Friday that the economy remains robust and inflation persists above the target threshold. Subsequent to Powell's statements and a pivotal inflation metric, Treasury yields ascended on Monday. The 10-year Treasury yield surged by nearly 13 basis points, reaching 4.319%.
Analyst Insights: Cryptocurrency analyst Michael Van de Poppe opined that Bitcoin is presently consolidating calmly. According to him, pivotal levels to monitor on shorter time frames include $67K, which must endure as support, and $71.7K, which could catalyze a definitive breakthrough toward the all-time high.
Analyst Keith Alan underscored the burgeoning bid liquidity gravitating toward $60,000. A segment of one of his posts read, "Despite marking the 7th consecutive green monthly close for BTC, there is no ‘up only' to the Halving."
Analyst and economist Alex Krüger prognosticates that Bitcoin may imminently scale new record highs. As per Krüger, the crypto daily charts evince highly bullish trends, prompting his anticipation of an imminent surge to unprecedented highs for Bitcoin. In his own words, "Expecting Bitcoin ATHs (all-time highs) soon."
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