Why does Bitcoin FUD sentiment escalate 48 hours before halving?

Why does Bitcoin FUD sentiment escalate 48 hours before halving? Picture 1

Bitcoin, the leading cryptocurrency, is in the midst of a turbulent period as it moves through volatile market sentiment, fueled by predictions of an upcoming event.

Over the weekend, Bitcoin dropped significantly in price to a low of $61,500, while ETH was also only $2,890. The recession has caused a wave of pessimism among traders, leading to panic selling and exacerbating fear, uncertainty and doubt (FUD) in the market.

At 6:00 a.m. today, April 18, Bitcoin was trading at $61,643, down 3.39% in the past 24 hours, signaling a cautious approach by investors.

Traders' focus has shifted to the ability to maintain Bitcoin holdings amid a potentially prolonged post-halving correction. As AI, gaming, DeFi and memecoin altcoins experience significant pullbacks, attention continues to turn towards Bitcoin and fiat liquidations, amplifying the widespread FUD sentiment, which Santiment reported.

Bitcoin ETF Chart | Source: IntoTheBlock

Furthermore, data from Farside Investor revealed net outflows from spot Bitcoin ETFs remained present for the second day in a row, amounting to $58 million on April 16. Even so, outflows from the Grayscale Bitcoin ETF GBTC showed signs of deceleration, totaling $79.4 million on April 17.

Total outflows from the Grayscale BTC ETF currently stand at $16.46 billion. Notably, even Ark Invests' ARKB ETF recorded an outflow of -13 million USD on the same day.

As the countdown to the halving continues, market participants brace for further volatility, driven by a combination of speculation, investor sentiment and external factors. outside.

Whether Bitcoin can weather the storm and come out stronger remains to be seen, but anticipation surrounding the halving ensures all eyes remain on the crypto markets in the coming hours.

Jessica Tanner

Update 19 April 2024