Has The Crypto Winter Arrived Ahead of Bitcoin Halving?

Advisors Magazine

Hey folks.

The month of April has turned out to be a major bear trap for the crypto market as the bulls are continually failing to defend the immediate lower support. The price of Bitcoin has plunged by nearly 8% during the earlier trading day and because of which traders and experiencing FUD to some point.

Because of this, the markets are expected to record another bearish weekly close if the price of Bitcoin fails to sustain above the key support level.

The last trading day saw a sharp decline in the cryptocurrency market as a result of a generalized risk-off attitude brought on by geopolitical concerns. The price of Ethereum was close to 12% while staying above $3100, while the price of Bitcoin dropped nearly to $65,000.

This pullback is deemed to have been caused by the biggest leverage washout in a month involving liquidating above $850m of derivatives across all the markets. Around $770 million was lost with this which was impacted by the recent plunge big time.

The broader markets that include Gold and the S&P 500 experienced a notable drop along with the cryptocurrencies. One of the main reason speculated is the ongoing tensions between Iran and Israel as a big update is expected in the next two days. This is deemed to have made the investors cautious leading to a sell off in different markets including crypto.

Under such turbulent circumstances, snap decisions could happen, but it's crucial to maintain composure. Although, instead of panicking, it's an alarming situation, it may be considered a buy opportunity and accumulat promising gems in the crypto space by some.

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