Bitcoin No Longer the #1 Crypto as Bitcoin Halving Gets Closer
Bitcoin (BTC) will be halving in just two more days, and at this key moment in the coin’s history, the BTC price is dropping.
Worse than that, Bitcoin has slipped to the number two position in an important category. It is still the top ranked crypto by market capitalization, but it has dropped to number two in trade volume.
Bitcoin has a 24-hour trade volume of $36 billion, but it has been soundly beaten by Tether (USD) in that area, with Tether’s $63 billion trade volume. At the moment, Bitcoin is suffering from a declining trade volume, down 21% from the previous day.
Bitcoin is in a downturn as well, with the price dropping 0.49% since yesterday. Now, with a price point of $62,715 (BTC/USD), the token is not in a good place leading up to the halving event.
Can Bitcoin Turn Things Around?
There are a few factors holding Bitcoin back from reaching its potential. The most influential of those is high US inflation and its effect on the economy. It is difficult for the cryptocurrency market to appear like a strong and stable investment in this kind of economic environment where inflation continues to rise.
At the recent FOMC meeting, FOMC member Bowman speaks on inflation and says a rate hike might help with inflation. If inflation remains high, she said, then it might be necessary to create a rate hike.
Bitcoin is also going through a period of price correction, and that is taking longer than most investors expect. Bitcoin surged to a record high recently, passing its old record. That caused a massive selloff that the coin has not yet recovered from.
Many investors are reluctant to buy more bitcoins because they are afraid that Bitcoin may not reach as high again anytime soon. The price of BTC corrected shortly after the new high was achieved, and the coin has had trouble staying above $70,000 since then. Investors are hoping that the Bitcoin halving will have a powerful effect on the BTC price and create a new, higher support level.
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