Bitcoin faced a correction after achieving an all-time high, with the popular cryptocurrency falling 8% to $61,682 after reaching a peak of $68,874 earlier in the day. The decline was attributed to some significant investors, often referred to as “bitcoin whales,” taking profits from the recent surge. Despite the correction, overall sentiment remains bullish, supported by expectations of Bitcoin’s upcoming halvening event in April.
The halvening event, occurring approximately every four years, involves reducing the number of new bitcoins entering circulation by half. Previous halvening events in 2012, 2016, and 2020 preceded significant bull runs for Bitcoin.
The recent record high was fueled by the launch of a spot-based bitcoin exchange-traded fund (ETF) in January, contributing to increased demand from institutional investors. According to data from BitMex Research, bitcoin ETFs in the U.S. now hold nearly 4% of all bitcoins in circulation.