- Bitcoin, Ethereum, and Solana all fell significantly in morning trading on Friday, signaling volatility ahead of the upcoming Bitcoin halving event.
- Despite the dip, there is still bullish sentiment around Bitcoin with investment firm AllianceBernstein predicting it will reach $90,000 by end of 2024.
- The Bitcoin halving is expected on April 15th and investors hope it will boost Bitcoin’s price to new highs, although some expect short-term volatility after the event.
The cryptocurrency market saw red on Friday as several major coins including Bitcoin, Ethereum, and Solana fell in morning trading. This could signal volatility ahead of the upcoming Bitcoin halving event as traders attempt to predict its impact on prices.
Bitcoin Drops Over 4%
Bitcoin, the number one cryptocurrency by market capitalization, fell over 4% in the last 24 hours to around $63,400 according to CoinGecko. After hitting multiple all-time highs recently, Bitcoin is experiencing some cooling off as the market anxiously awaits the halving and its aftermath.
Bullish Sentiment Remains
Despite the dip, there is still bullish sentiment around Bitcoin. Investment firm Alliance Bernstein predicted Bitcoin will reach $90,000 by end of 2024. Activity around new Bitcoin ETFs is also boosting enthusiasm.
When is the Bitcoin Halving?
The Bitcoin halving, which cuts mining rewards in half, was originally expected on 4/20 but has since moved up to April 15th. Investors hope the halving will boost Bitcoin’s price to new highs, but some expect volatility immediately after the event.
Ethereum Falls Nearly 6%
Ethereum, the second-largest cryptocurrency, fell almost 6% to around $3,320 over the last day. Investors are waiting to see if the SEC approves Ethereum ETFs. However, the SEC investigation into the Ethereum Foundation has dampened enthusiasm.
Solana Plunges Over 8%
Solana plunged over 8% to around $171, just days after surpassing $200 for the first time in years. Solana has faced congestion issues from meme coin demand, which may be cooling off. Prices of Solana meme coins like BONK and Dogwifhat also fell significantly.
Conclusion
Major cryptocurrencies face uncertainty ahead of Bitcoin’s halving event. However, analysts remain optimistic about Bitcoin reaching new highs, especially if new ETF trading continues to boost volume. It remains to be seen whether the halving will immediately impact prices or if the bull run will continue.
