Bitcoin reached historic highs with the expectation of a Spot ETF approval and a general market rise. However, the recent decline has caused concerns about its future. The price drop has raised questions about whether Bitcoin could fall below $40,000.
Following its all-time high of $69,000 in November 2019, Bitcoin is experiencing a downward trend. The approval of a Spot ETF and institutional interest have contributed to significant increases in Bitcoin’s value. The halving event expected in April 2024 pushed Bitcoin above the $40,000 level, which had not been seen for a long time.
The halving event is a development that occurs every four years, causing a reduction in the supply of cryptocurrency. Analysts are expecting a positive response from the SEC to Spot ETF applications. If approved, significant gains could be made in cryptocurrency, but if rejected, substantial losses could occur.
According to historical data from previous halving events in 2017 and 2019, Bitcoin reached its all-time high. Many cryptocurrency analysts are optimistic about positive developments concerning the expected halving event in April 2024. However, the drop experienced last weekend brought Bitcoin close to the $40,000 threshold.
Finally, weekly CoinShares reports about institutional investors’ entries and exits from the crypto markets provide important information. The latest report revealed that institutional investors withdrew a total of $16 million from the crypto markets last week. These withdrawals could create new selling pressure on Bitcoin.