The price of Bitcoin experienced a decline on Thursday, extending recent losses amid persistent pressure from higher U.S. interest rates, dampening risk sentiment across cryptocurrency markets.
Market attention remains fixed on the impending halving event, expected to occur with the generation of block no. 840,000 on the Bitcoin blockchain. With less than 300 blocks remaining until the event, scheduled by April 20, speculation mounts regarding its potential impact on Bitcoin’s long-term supply dynamics.
Bitcoin retreated by 3.3% to $61,767.3 within the past 24 hours, reflecting ongoing uncertainty among investors.
The halving event, which will reduce the rate of new Bitcoin issuance by halving rewards for miners, underscores the token’s scarcity narrative, which historically has supported its price trajectory. However, while Bitcoin has experienced significant appreciation over the past 12 years, past halving events have not consistently correlated with immediate price gains.
Market observers note that external factors, such as interest rate fluctuations and investor risk appetite, exert substantial influence on Bitcoin’s price movements. Despite recent momentum fueled by the U.S. approval of spot exchange-traded funds, the token’s ascent appears to have tapered off, especially amid evolving macroeconomic conditions.
Meanwhile, broader cryptocurrency markets sustained losses as traders recalibrated expectations for a potential interest rate cut by the Federal Reserve in June. Strong inflation data and hawkish signals from Fed officials tempered market optimism, overshadowing a mild retreat in the U.S. dollar.
Ethereum, the second-largest cryptocurrency, declined by 3.3% to $3,009.41, while Solana and XRP experienced losses of 5% and 0.1%, respectively. Notably, Bitcoin’s dominance in the crypto market remains pronounced, accounting for over 55% of the overall market value.
With ongoing volatility and shifting macroeconomic dynamics, cryptocurrency investors remain vigilant, navigating evolving market conditions and the impending halving event with caution.