In a striking turnaround that caught many by surprise, Bitcoin has potentially ended its pre-halving price drop by witnessing one of the most significant single-day accumulations in recent history. On March 25, data from blockchain analytics firm Santiment showed an impressive rebound, with Bitcoin’s value soaring back to the $71,000 mark. This development has left traders and crypto enthusiasts buzzing about the future of the world’s leading cryptocurrency.
According to Santiment, over the weekend, Bitcoin saw an extraordinary influx of investment, with “sharks” and “whales” – investors holding between 10 and 10,000 BTC – adding a whopping 51,959 BTC to their portfolios. This move, valued at around $3.4 billion, accounted for a notable 0.263% of Bitcoin’s total circulating supply being purchased in just one day.
This accumulation comes at a pivotal time, with the Bitcoin halving event just three weeks away, expected around April 19. Such events have historically impacted the cryptocurrency market significantly, often leading to increased wallet sizes for major stakeholders and a positive effect on the overall market cap of cryptocurrencies.
Despite fears of a substantial pre-halving price retraction, Bitcoin has shown resilience, with only a 17% drop from its March 14 peak of $73,738 to a low of $61,494 on March 20, as reported by CoinGecko. This retrace is closely aligned with the pre-halving dip in 2020, suggesting a possible stabilization in market behavior.
Experts like technical analyst Rekt Capital had predicted a milder downturn, highlighting the unique dynamics of this cycle compared to historical trends. Meanwhile, research firm Kaiko pointed out the recent volatility, noting the fragmented liquidity across exchanges and trading pairs in the cryptocurrency market.
As Bitcoin rebounds, trading 5.2% higher at $70,252 after reaching an intraday high of $71,000, the crypto community is keenly watching to see if this recovery marks the end of the pre-halving retrace, setting the stage for what could be another landmark event in Bitcoin’s storied history.