Bitcoin Halving Impact and Price Movements
In April 2024, Bitcoin experienced a significant price drop, marking its sharpest decline since the FTX collapse. The focus was on halving charts as network activity soared to record highs. Markus Thielen, CEO and senior analyst at 10x Research, predicts a potential further drop in Bitcoin’s price to $52,000. Thielen attributes this projection to a slowdown in the inflows into Bitcoin ETFs.
Despite the price volatility following the halving, experts at Bitfinex foresee a consolidation period for Bitcoin lasting 1-2 months. They believe that Bitcoin will maintain its market leadership and predict a more stable economic environment compared to previous halving events.
Bitcoin Network Activity and Developments
The post-halving period witnessed a surge in daily Bitcoin transactions, peaking at 927k on April 23. However, this spike was short-lived, with transaction volumes dropping to 403k by the end of the month. Additionally, average daily transaction fees reached a record high of $25.8 million before declining to $6.15 million.
The introduction of the Runes protocol led to increased network activity, with Bitcoin recording its highest number of confirmed payments (1.63 million) on April 23. This unprecedented activity was driven by the surge in demand for rare digital inscriptions and the creation of new tokens via the Runes protocol.
