Summary
TLDR: Cryptocurrencies and US equities declined, with Bitcoin and Ether losing 5% and 7% respectively. Market is experiencing deleveraging and reassessment. S&P 500 and Nasdaq also opened lower due to uncertainty around interest rate cuts. Bitcoin’s next halving event is approaching, with analysts predicting price increase post-halving. Bitcoin is closer to its recent all-time high, with changing dynamics due to approval of spot ETFs.
Key Points
1. Cryptocurrencies and US equities both experienced a decline at the start of the second quarter, with Bitcoin and Ether losing 5% and 7% respectively over a 24-hour period.
2. The S&P 500 and Nasdaq Composite indexes opened lower, with the Dow losing more than 500 points at its session low, as changing expectations around the pace of interest rate cuts from the Federal Reserve made traders uneasy.
3. Bitcoin’s upcoming halving event, expected around April 19, 2024, has led to mixed short-term price impacts in the past, but historically BTC tends to increase in the nine to 12 months post-halving.