• Friday, March 29, 2024
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BusinessDay

Bitcoin sustains rally less than seven days to halving event

The price of bitcoin has remained in the green zone after ending April with a 29 percent gain and jumping over $1000 in one day and almost touched $9,5000 on Sunday, 3 May.

Bitcoin also increased its market share with 2 percentage points last week while most large caps lost shares according to Luno’s weekly market update.

 

In the same week, the global economic figures came back with dampened expectations as the US reported first-quarter GDP growth of -4.8 percent. Italy’s GDP dropped by -4.5 percent, Spain came in at -5.2 percent and France at -5.8 percent. The European Central Bank said it could get worse in the second quarter as it projects a fall of 15 percent.

 

Read more Stablecoins demand surge as investors seek safe landing

 

With the Bitcoin Halving event less than seven days away, investors have also increased their position in the cryptocurrency market in anticipation of a price spike. The 7-day average trading volume increased massively last week, with a strong real daily volume of $4 billion on Thursday. After several weeks with a clear downwards trend, the bitcoin volume is now trending upwards again as the price is gaining momentum.

This is expected to lead to a shift in the volume trend, as the solid volume is a healthy sign to support the rapid price increase.

 

As the halving event looms, bitcoin mining difficulty – a measure of how hard it is to compete for block rewards – is at an all-time high in the network’s last readjustment before the halving happens. The mining difficulty is designed to adjust itself every 2016 blocks, or about two weeks, based on the competition in each adjustment cycle.