From Investing.com: 2024-05-09 16:00:48

The recent halving on April 19 stirred up the crypto market, causing significant price volatility. Analyst Daniel González explained it is a normal market response to the halving event, which has seen Bitcoin drop to $57,000 from its all-time high of $73,000 before the halving.

The current halving cycle leading to the 2024 event has been unique, with a bullish rally driven by the opening of Bitcoin ETFs. Despite expectations of a price increase post-halving due to supply reduction, the market has been quiet, leading to some anxiety among investors and a Bitcoin price correction.

Market volatility is considered normal by experts, with the recent drop in Bitcoin to $61,000 attributed to various factors like high U.S. interest rates and increased regulatory scrutiny. Notably, the SEC is investigating Robinhood, Coinbase, and Ethereum regarding their operations in the crypto sector.

Concerns over regulatory scrutiny and the unlocking of $2 billion worth of altcoins in the coming weeks have led to uncertainty in the market. These challenges, along with high U.S. interest rates, are driving traders to prefer the dollar over higher-risk assets like cryptocurrencies.

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Read more at Investing.com: Was it expected? By Investing.com