Summary
Bitcoin’s price slipped below $70,000 ahead of the upcoming block reward halving on April 20, with volatility increasing. The annualized realized volatility hit a high of 63.76%, the highest since August 2022. Some analysts believe the recent volatility reflects a “crisis of faith” among traders. While previous halvings have been followed by price surges, there are concerns it may already be priced in. The approval of U.S. spot Bitcoin ETFs and the upcoming halving could result in a supply crunch, leading to bullish indicators as the event approaches.
Key Points
1. The price of Bitcoin slipped below $70,000 early Monday morning, with volatility increasing ahead of the much-anticipated block reward halving.
2. Bitcoin’s 30-day annualized realized volatility hit a high of 63.76% last week, remaining over 60% by the close of the week, its highest level since August 2022.
3. The 2024 halving is atypical because Bitcoin’s price hit an all-time high ahead of the halving, propelled by the approval of multiple U.S. spot Bitcoin ETFs in January, leading to a potential supply crunch as the halving approaches.