The recent week saw Bitcoin (BTC) experiencing
a 0.7% decline to $63,300, following a significant 10% drop over the weekend.
On March 13, the coin dipped even further, reaching $60,180, marking its lowest
reading since March 5.
This sharp decline was triggered by Iran's
missile and drone attack on Israel. Although most targets were shut down and
the damage to Israel was minimal, this event prompted a negative response in
the crypto market. Altcoins, in particular, suffered disproportionately, losing
twice as much value as Bitcoin. This outcome surprised many investors who had
considered crypto assets as safe haven assets in times of geopolitical
conflict. Instead, traditional safe havens like gold assets saw a surge, with
prices reaching new highs at $2431 per troy ounce.
Despite the turmoil, Bitcoin managed to hold
above the strong support level at $60,000 per coin. This has fueled optimism
among investors, especially with the upcoming halving event scheduled for April
20. Historically, Bitcoin has seen significant price increases following
halving events, with an average gain of around 75%. Some investors anticipate a
rally that could see prices reaching $110,000 by September 20. However, this
projection is contested by skeptics who argue that the post-halving rally may
already be priced into the market.
The current financial landscape, characterized
by soaring Treasury yields and potential stock market corrections, adds further
uncertainty to Bitcoin's future trajectory. This uncertainty is reflected in
the recent outflows from crypto investment vehicles. The ProShares Bitcoin
Strategy ETF (BITO) reported its largest outflow in history. IBIT from
BlackRock and FBTC from Fidelity reported net inflows of $875.0 million, while GBTC
from Grayscale suffered a loss of $799.5 million. So, overall net inflows were
piddling. This week outflows have accelerated. IBIT and FBTC received net
inflows of $111.0 million, while GBTC reports losses of $166.2 million.
In addition to Bitcoin's performance, NFT
Bored Apes Yacht Club (BAYC) collectibles dropped to 10.80 ETH, which is a 90%
discount from peak prices at 120 ETH. It could be an excellent opportunity for
those, who believe in the project.