The price of Bitcoin (BTC) has fallen to $62,000 U.S. as the highly anticipated halving event that is expected on April 20 draws near.
Bitcoin’s price has now declined nearly 10% in the month of April, including a 7% decrease in the last five trading sessions.
As recently as March 14, Bitcoin’s price had traded at an all-time high of just under $74,000 U.S. per digital token.
The current slump comes as stock market volatility intensifies, bond yields rise, and geopolitical tensions in the Middle East escalate, shaking investors’ appetite for risk and creating an uncertain outlook for cryptocurrencies.
The drop in Bitcoin also comes days ahead of the halving event, which is when the amount of Bitcoin that can be mined is reduced by 50%, limiting the supply of the largest cryptocurrency.
Past halving events have led to a sharp rise in the price of Bitcoin. But analysts are hedging their bets this time around.
In a recent note to clients, U.S. investment bank Goldman Sachs (GS) cautioned investors against reading too much into the past halving events, saying “Caution should be taken against extrapolating the past cycles and the impact of halving given prevailing macro conditions.”
Despite the current drawdown, Bitcoin’s price is still up 41% on the year.
