Bitcoin, Ether Coil as Crypto Traders in Limbo After Halving

Recently, there have been turbulent times in the financial world with missile exchanges between major political powers and the anticipated bitcoin halving event. However, tranquility seems to have settled back into the market as neither buyers nor sellers are aggressively driving the price movement.

After the Bitcoin halving, market turbulence lessened, according to Thomas Kim, a trader at Presto. He shared this insight with CoinDesk. The three-day market volatility was significantly lower than the expected volatility indicated in Bitcoin options. However, investors should remain vigilant and consider broader economic factors for accurate assessment.

According to Justin d’Anethan, the crypto market maker from Keyrock based in Asia, traders are currently facing difficulty in making clear decisions about which trading position to adopt, as expressed during a Telegram conversation with CoinDesk.

He shared with CoinDesk that this market, whether crypto or traditional, is intriguing but not particularly volatile. Traders appear uncertain about whether to become optimistic or pessimistic, as indicated by the stable prices.

The CoinDesk Index, which represents the top digital assets based on market capitalization, currently remains unchanged at a value of 2,343.

“Negative news is piling up heavily and affecting market performance,” d’Anethan explained, referring to the SEC’s intention to postpone the ETF approval, recent remarks from President Biden regarding crypto mining, and ongoing withdrawals of investments in crypto products.

In a contrasting perspective, and with a potentially positive outlook, the recent market downturn, triggered by forced sell-offs of leveraged long positions, might have eliminated excess bubbles. As a result, we now find ourselves in a decent position with solid investments.

During the weekend of April 12-13, when Iran carried out a missile strike against Israel, approximately $1.4 billion worth of long positions in Coinglass data were terminated.

After the coin supply has been reduced by half through halving, crypto investors are reluctant to sell their holdings. This hesitance might ultimately lead to increased demand and potentially higher prices in the future.