By
Godfrey Benjamin
April 29th, 2024
Bitcoin price surged to $67,000 during Asian trading hours, following the approval of spot Bitcoin ETFs in Hong Kong. However, this euphoria was short-lived as rising US Treasury yields impacted market sentiment, pushing BTC back to $62,500.
Renowned Bitcoin (BTC) supporter Samson Mow has highlighted reasons for the recent price downturn in the crypto market.
In a recent post on the X platform, Mow stated that investors reduced their crypto exposure over the weekend due to the fear of war in the Middle East. However, he noted that Bitcoin was the only asset that traded globally on weekends.
Samson Mow Identifies Reasons for Bitcoin Price Slump
In addition to this, Mow emphasized that market participants lack an understanding of the implications of the Bitcoin halving event. For those aware of the implications of the event, Mow stated that they are unsure how it will affect the price of Bitcoin.
Typically, the Bitcoin halving event holds relevance for both the cryptocurrency and miners. This is because as the block reward decreases, miners’ incentives decrease, potentially affecting network security and hash rate. This situation has led to concerns about the viability of mining operations from investors.
Fear of war triggered derisking on the weekend, with the only asset that trades globally on weekends, #Bitcoin. TradFi markets had to have their bit of panic today. All of this is an overreaction and will wash over soon. Then it will be Omega time.
— Samson Mow (@Excellion) April 16, 2024
In Mow’s opinion, investors have chosen to adopt a wait-and-see approach, refraining from making investment decisions until there is more clarity about the market’s direction following the halving, thus leading to the recent crash in the market.
Despite these concerns, Mow noted that the halving event would ignite massive supply shock in the market. According to him, investors are closely monitoring the inflows and demand of the newly introduced spot Bitcoin Exchange-Traded Fund (ETF) in the United States and, thus, should know the implications of the halving event on Bitcoin’s price.
Another notable event pointed out by Mow that could influence the price of Bitcoin is the potential launch of a spot ETF in Hong Kong. Per earlier reports from Coinspeaker, the Hong Kong Securities Regulatory Commission approved the first spot Bitcoin ETF on April 15. Mow concluded that investors still accumulating Bitcoin are the lion amidst a herd of sheep.
BTC Price Movement
On Monday, Bitcoin price surged to $67,000 during Asian trading hours, following the approval of spot Bitcoin ETFs in Hong Kong. However, this euphoria was short-lived as rising US Treasury yields impacted market sentiment, pushing Bitcoin back to $62,500.
As of this writing, Bitcoin is still experiencing drawbacks as it trades at $63,282, representing a decrease of 4.49% in the last 24 hours. However, the trading volume is slightly up by 1.2% to $43.97 billion. The Bitcoin price forecast sentiment is currently pessimistic, with the Fear & Greed Index reading 65 (Greed).
Kris Marszalek, CEO of Crypto.com is still bullish on Bitcoin. The CEO claims Bitcoin could continue on its downward movement up to the halving event. Nonetheless, he believes the event could cause the price of the leading cryptocurrency to climb to a new height.
“I expect pretty decent action within the six months following the Bitcoin halving,” says Marszalek.