Crypto Market Decides on a Course of Action amid Fear

Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the stock market, trading, and all things Wall Street. Today, we’re diving into the world of cryptocurrency, specifically Bitcoin, and its recent movements in the market.

Bitcoin has retraced back to the lows of the past seven weeks, hovering around the 61.8% retracement level from the January lows. This critical juncture has investors wondering if Bitcoin will continue its decline or reverse course towards growth. Adding to the uncertainty, the 50-day moving average has acted as resistance in recent trading sessions.

According to CoinShares, crypto fund investments saw a decline of $126 million last week, following a period of inflows totaling $646 million. This slight outflow comes on the heels of two weeks of positive growth in the index, with Bitcoin investments decreasing by $110 million, Ethereum by $29 million, and Solana by $4 million.

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Analyst and CMCC Crest co-founder, Willie Wu, suggests that if Bitcoin breaks below the $58,900 support level held by short-term holders, the market could enter a bearish phase. Wu points out that historically, Bitcoin has experienced a bearish phase before halving events due to the ‘overaccumulation’ of the cryptocurrency.

TheBitcoin halving event could have significant implications for the mining industry, with TheMinerMag estimating that only 20% of the world’s mining companies will be able to maintain their revenue levels post-halving. This could result in a potential loss of $10 billion in annual revenue for the mining industry.

Additionally, 10x Research warns that following the halving, miners may look to liquidate around $5 billion worth of Bitcoin inventory, potentially putting downward pressure on the price for the next four to six months.

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