Bitcoin traders are currently looking more toward geopolitical issues to assess the trajectory of Bitcoin prices than the halving event itself. According to Reuters, though industry insiders said on Monday that the cryptocurrency’s fortunes were more directly related to broader financial market emotions and geopolitics, the so-called halving event of Bitcoin has had little effect on its price thus far.
Geopolitical Issues to be on Crypto Traders List
To reduce the rate at which new bitcoins are created, the “halving” of Bitcoin occurs every four years to keep the supply and demand in balance. Usually after the halving, the prices of the OG-crypto currency tend to toar. However, this time the impact of the geopolitical situation is greater than the effect of the halving.
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Bitcoin Traders Gauge Withdrawals
There were significant withdrawals from both Bitcoin and Ethereum last week, totaling $226 million. The largest beneficiary of this trend was Bitcoin, which had withdrawals of $192 million, while Ethereum saw $34 million leave the market for the sixth week in a row. Interestingly, even short bets in Bitcoin saw withdrawals, if only on a small scale of $0.3 million.
Nevertheless, amid this flight of capital, there was a ray of hope as multi-asset sentiment somewhat improved, attracting $9 million into various investment opportunities. In addition, altcoins such as Chainlink and Litecoin were able to defy the trend, drawing inflows of $1.7 million and $3.2 million, respectively.
Bitcoin Traders Cautious of Bitcoin ETF Outflows
Spot Bitcoin ETFs recorded a $165 million net outflow over the previous week, which was in line with a decline in buying activity that was especially apparent during the US tax filing season. Even with this decline in activity, nine ETFs recorded trading volumes on Wednesday that were close to $2.7 billion, indicating sustained interest and involvement in the market.
The price trajectory of Bitcoin is currently $65,899.9649, with a $20.7 billion 24-hour trading volume and a 1.38% increase in the last day. These numbers confirm Bitcoin’s position as the leading player in the cryptocurrency space, with its live market capitalization holding steady at an impressive $1.2 trillion.
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