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These Bitcoin Fundamentals Remain Bullish Despite Today’s Crash Below $65K

Summary:
TL;DR Bitcoin has seen a significant price dip, dropping to almost ,100. Despite the recent downturn, there are underlying factors poised to drive a positive turnaround in the asset’s market performance. Abandoning Exchanges The price of the primary cryptocurrency has experienced a significant correction in the past several hours, dropping to as low as ,100. Despite being down 7% on a weekly scale (per CoinGecko’s data), some essential factors hint the trend may not last long. One such element worth observing is Bitcoin’s exchange netflow. According to CryptoQuant, the indicator has been predominantly in negative territory in the past seven days, charting two massive red candles. Shifting from exchanges toward self-custody methods is considered bullish since it

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TL;DR

  • Bitcoin has seen a significant price dip, dropping to almost $65,100.
  • Despite the recent downturn, there are underlying factors poised to drive a positive turnaround in the asset’s market performance.

Abandoning Exchanges

The price of the primary cryptocurrency has experienced a significant correction in the past several hours, dropping to as low as $65,100. Despite being down 7% on a weekly scale (per CoinGecko’s data), some essential factors hint the trend may not last long.

One such element worth observing is Bitcoin’s exchange netflow. According to CryptoQuant, the indicator has been predominantly in negative territory in the past seven days, charting two massive red candles. Shifting from exchanges toward self-custody methods is considered bullish since it reduces the immediate selling pressure.

BTC Exchange Netflow
BTC Exchange Netflow, Source: CoinGecko

The BTC Halving

Perhaps the most obvious factor that could contribute to a new BTC price resurgence is the halving scheduled for the end of April. The event, which occurs approximately every four years or when 210,000 blocks are mined on the network, cuts the rewards distributed to miners in half. 

This reduces the rate at which new BTC is produced and released into circulation, making the asset scarcer and potentially more valuable in time. The halving will repeat numerous times for more than a century in the future until the maximum supply of 21 million BTC is reached.

Historically, it has served as a catalyst for future price movements for the leading cryptocurrency and the entire digital asset market. 

Those curious to find out whether BTC has a chance to reach a new all-time high before the halving can check the estimation of the AI chatbot Perplexity here.

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