Throughout April, the crypto market witnessed a series of historic events that set the stage for potential changes in the digital asset landscape. Amidst geopolitical tensions and macroeconomic uncertainties in the United States, there were significant developments this month that fascinated investors around the world.
Fourth Bitcoin Halving: Market Consolidation
The long-awaited fourth Bitcoin Halving took place in April and block rewards were reduced, starting a new era for miners. Bitcoin traded fluctuating between $59,000 and $73,700, repeatedly testing the critical $60,000 support level.
Opportunities in the Bitcoin Ecosystem
The first Epic Satoshi Auction, hosted by CoinEx and completed with 33.3 BTC, not only commemorated the halving but also demonstrated the increasing importance and value of rare satoshis within the Bitcoin network.
At the same time, the emergence of the Runes Protocol attracted the attention of market participants. The market cap of Runes tokens quickly exceeded $900 million, attracting more than 450,000 token holders as of April 30. This excitement was limited by a sudden increase in transaction fees; these fees have returned to more normal levels after exceeding 1,900 sat/bc at the end of April.
Ethereum’s Quiet Accumulation Amid Low Gas Fees
While Bitcoin is gaining a lot of attention, on-chain data has shown that whales are accumulating Ethereum despite recent underperformance. The decline in gas prices also creates strategic opportunities for investors. The total value locked (TVL) of the leading liquid staking and restaking protocols has reached impressive levels of $39 billion and $14 billion respectively. This contributed to declining on-chain activity.
Stablecoins Rise While Altcoins Stagnate
Stablecoins have recorded significant stability amid market volatility, with USDC and USDT witnessing unprecedented growth, reaching a combined market capitalization of $140 billion.
However, except for Ethereum, altcoins stagnated compared to Bitcoin, oscillating between 0.3 and 0.4 in terms of market capitalization ratio. Despite clear inflows from stablecoins, altcoins have struggled to gain momentum, reflecting the cautious tone of investors amid economic uncertainties around the world.
Looking to the Future: The Way to Move Forward in an Environment of Uncertainty
As Bitcoin pulled back and economic uncertainties increased, market sentiment shifted towards risk aversion, triggering widespread liquidation in altcoins. Still, underlying liquidity remained solid, signaling potential opportunities ahead. With Bitcoin poised to establish a clear trend and broader market stability, investors can expect a pivot towards altcoins and high-quality assets could see significant inflows. Whether the price of Bitcoin falls or rises, the market is predicted to experience dynamic changes and present both challenges and opportunities for investors in the coming months.
CoinEx – Global Cryptocurrency Exchange
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