Reasons for the Static or Low Movement in the Price of Bitcoin

If you noticed, something incredible and shocking happened after the halving of Bitcoin on the 20th of April. This halving events would have brought about a pump or dump in the price of Bitcoin but is shocking to see that bitcoin remained static.** It was at the rate of $64,000 I moved a little to $66k which was less expected**. The halving events is the time or crypto Traders have been waiting for. It is not as if there are shocked at the slow movement in the price of Bitcoin.

There are stunned that other altcoins are moving and pumping at a relatively fast pace. E.g the price of bonk before the halving was $0.000014 but it is now $0.000023. Quite an increase. Some people who asked why this happens that altcoins moves first before Bitcoin. They see this as an unusual thing because it is always observed that the price of Bitcoin will pump first before other altcoins pumps. It is either bitcoin pumps first before altcoins or they move at the same pace

For clarity, these are reasons why bitcoin has remained static after the halving while other coins are experiencing huge surges. We have delve into several key factors that may warrant this. After a halving event, there is often an excitement in the crypto ecosystem as there will be an increased buying pressure and upward movement in the market.

While these pumps may not be guaranteed as factors like investor sentiment and external events including market conditions, not expecting or placing hopes on this pumps would be a good step. Let us talk about this factors which the first is Market dominance.

Market Dominance

The reason Bitcoin may appear static compared to other coins is the market dominance and maturity in Bitcoin. As the first cryptocurrency with a huge market capitalization, its movement in price are often more stable and less volatile compared to newer or smaller coins with low market capitalization. Disability on its part can be seen as static when compared to the pumps of altcoins.

Another reason why bitcoin appears static is the sentiment in the ecosystem. There is always a bullish and bearish sentiment by investors concerning the halving. Some belief that they reduce supply in new bitcoins will lead to appreciation in price while others may think that because of the reduction in the coin there will be a sharp decline.

Investor's sentiments can cause all contribute to the varied price movement in the market. While bitcoin price may not move as other coins are doing so now in the market, it's long-term value as a digital gold remains a significant reason for increased adoption. So factors like credibility, market dominance and technological innovation are possible reasons for the static nature or slow movement in the price of Bitcoin.

A notable discrepancy is emerging between bitcoin's price and the total balance of BTC on exchanges. While the price has remained stagnant or declined, the balance on exchanges has consistently decreased, reaching record low levels for the year. This decline in exchange balances suggests that traders are transferring their bitcoin off exchanges and into personal wallets, likely with the intention of long-term holding.

Despite the downward price trend, this divergence may signal that the current consolidation phase is actually a period of accumulation before a potential upward movement in the future.

So bitcoin static behavior after the halving can be attributed to its advantages such as limited supply, maturity, liquidity and credibility while the pump seen by other coins can be explained by factors such as low market capitalization, volatility unique tokenomics, technological innovation and sentiments in the market. Our understanding of these will help us navigate to the ecosystem with caution while taking in profit from trades.

In my next post, I'll give a quick analysis on the movement of bitcoin during this halving events and I'll give its on-chain explanation as well.

All screenshots are from my binance

Disclaimer :Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have