Bitcoin (BTC) made a significant move towards the $66,000 level today, continuing the ongoing volatility in the cryptocurrency market.
Bitcoin Tests $66K as Analysts Expect More Volatility Before Calm
Market watchers predict more volatility ahead, despite some signs of consolidation.
Pythagoras Investments Capital Formation Director Semir Gabeljic drew attention to the recent fluctuation in Bitcoin, referring to the 10% drop experienced at the beginning of the week.
Gabeljic attributed this volatility to spot Bitcoin ETF outflows of approximately $300 million from Grayscale Bitcoin Trust (GBTC) on March 20.
He noted that such declines are typical before Bitcoin halving events and that he expects further volatility ahead of the next halving.
In a market analysis published today, Singapore-based QCP Capital suggested that Bitcoin and Ethereum are trading in a relatively narrow range, pointing to a potential market breakout over the weekend following last week's pre-FOMC (Federal Open Market Committee) volatility.
Regarding Ethereum (ETH), QCP Capital observed a widening of the decline in the Grayscale ETH Trust (from -8% to -20% in two weeks) and pointed out that expectations for a spot Ethereum ETF to be approved in the near future have diminished.
Prediction markets on platforms like Polymarket also reflect skepticism regarding the approval of an Ethereum ETF by May 31, currently trading at 21% probability.
While Bitcoin and Ethereum go through periods of volatility and regulatory scrutiny, market participants remain cautious and expect further volatility in the near term.
Analysts recommend closely monitoring key developments to gauge the course of the cryptocurrency market in the coming weeks.
*This is not investment advice.
