The Bitcoin halving ushered in an initial upward movement to the price of most crypto assets as institutional investors picked up the pace. Weeks before the event saw outflows leading to massive liquidations as macroeconomic factors and geopolitical tensions reduced investor sentiment.
After the halving, most crypto assets flipped green drawing the question of whether the halving can ignite the next bull run through institutional and retail inflows. Bitcoin price which stood under $63,000 after massive liquidations is now above $66,500.
Bitcoin halving is perceived as a bullish phase for the asset and is expected to usher in new optimism in the market.
Institutional Investors’ Highs and Lows
Coming out to the 2022 bear market, BTC trades below $20,000 picking up momentum in 2023. BlackRock’s application for spot Bitcoin ETF coupled with similar applications by other firms led to new inflows in the market. Institutional investors renewed their appetite for Bitcoin and other products increasing its price.
In December, Bitcoin price topped $44,000 with bulls making higher projections post-approvals. The Securities and Exchange Commission approved spot ETFs on Jan 11 leading to massive institutional inflows to the asset. The asset’s price topped $72,000 setting a new all-time high before interests plummeted.
Weeks leading on to the Bitcoin halving saw miners and traders reposition holdings leading to a decline in price. Some miners looked to hedge their reserves for more capacity while others sought to take gains from the skyrocketing price of the asset in the last 12 months.
Users Suggest a Rebound
Crypto investment products have recorded outflows for two straight weeks. Last week, crypto products saw $206 million in exits and a decline in trading volumes.
Bitcoin’s $192 million outflows reduced monthly inflows to $368 million taking the market capitalization to $69.4 billion. Like ETF approvals, the Bitcoin halving has rallied investors to the market as seen in the slight upticks in crypto assets. Memecoin has also recorded a rebound in the last 48 hours.
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Read More: Will Bitcoin Halving Reignite Institutional Investors’ Inflows? | CoinGape
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