Why is Bitcoin dumping even after it's halving

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Well most of us in the cryptocurrency space expected soaring price levels immediately after Bitcoin halving we expected to see price levels never seen before and we expected to see Bitcoin making all time highs and other coins follow suite we wanted to see parabolic price action the like of which we see many people flock info the cryptocurrency space but yet it seems we are seeing quiet the opposite of what we expected.

It almost seems to many like cryptocurrency has entered another bear market in 2024 shortly after the Bitcoin halving instead of the super bull cycle many were clamoring for and we had hoped for, Bitcoin continues to dump and with it other cryptocurrency even massively and we are left wondering what's wrong and what could have led to this, what didn't we anticipate and where really are we heading to and if this is the end of it all, we may wonder if we might even see the bull run we were eagerly awaiting.

True we have reasons to be concerned since the general idea of Bitcoin halving is for it to create a supply shock which inturn with the demand remaining the same or increasing we lead to higher price action but now it seems like nothing happen like we have returned exactly were we left off, a bear cycle.

But ofcourse it's vital we understand the workings of the market and that the halving event alone can't determine the positive future prices especially in the immediate short terms that's why today I will take a keen look at why the Bitcoin market is down and with it the rest of the cryptocurrency market despite the halving having been just a few months back and we are yet to see the bullish effect of this halving.

Let's get on some of this factors;

Why could the market be down despite the halving event

One of the reasons I believe behind the market dumping and continues dumping is based on the overall sentiment of the market now, generally every market no matter how good the asset is or the project make no mistake it's price it's driven by participation of users which is to say Bitcoin no matter how good if everyone pulls out their fund will go to $0, ofcourse that's not happening.

So my point being that the investors or even those trading the cryptocurrency market plays a major role in determining it's prices and from events it is clear that there is a rather bad market sentiments we could see from price action when those invested in an asset becomes rather unsure of that project future or it's next plan or becomes rather not hopeful per say then it's likely to affect price rather badly as we see happening despite things like the recent halving of Bitcoin.

Also it could be because investors wants to lock in profit, we saw Bitcoin rose significantly over the past year and this year almost from $15k to a significant high of over $70k breaking it's previous all time and for the first time ever Bitcoin actually broke a previous high made in the previous bull just months before the next halving, it usually happens after the halving but ofcourse the ETF approval news drove prices to a significant high, now it's only natural for the many people who have been in on this moves to decide to lock in profit some when so many early buyers sell of their holdings it will likely cause dumpings in the market despite the halving event.

Another thing could also be from market conditions in general, that of the financial market we have often seen instances when if the traditional market like the Dow and nasdaq when they are down Bitcoin also becomes bearish even if not immediately and when they move up Bitcoin eventually does so too so ofcourse other factors affect Bitcoin prices too apart from the halving and it could be this or macroeconomics factors which affect almost every market but the cryptocurrency market and the traditional market, no exceptions.

We can't really expect cryptocurrency to be the only market doing fine when other markets are bleeding so it's likely also one of the reasons behind what we are seeing happening now that's the broader market conditions is bad so cryptocurrency is expectedly falling.

We often have unrealistic expectations at times there are many who had wished that immediately Bitcoin halved we would immediately go flying to $100k and above and they become so impatient and this when not realized leaves them disappointed, when those that had such expectations which I know many do doesn't see the immediate price levels they expected they could get frustrated and start selling off their holdings which could result in seeling pressure like we are currently witnessing, postponed expectations have left them impatient and they can't wait any longer this could also contribute to the drastic dump we seeing here despite the supply shock Bitcoin halving caused.

Sometimes too we could reason what if some of Bitcoin miners have angrily halted their operations since they are no longer seeing the rewards they are used to, we know after the halving event that reward for mining Bitcoin was halved now for the miners who aren't satisfied with this or feel they are not getting the right rewards for the effort and money they are putting in might halt or stop their operations which inturn impact the network and disrupt it relatively and when that happens to an extent it affects investors confidence and many may start pulling their money out subsequently resulting in dumps we are experiencing now.

Also never forget that Bitcoin is a highly volatile asset class and the market's nature is to move up and down hence it's given that its likely to go down after a considerably time moving up so this could be the normal market reaction of a volatile asset class like Bitcoin.

In all we need to be patient and ride this out since we know were we are going and shouldn't allow temporary price action to make us lose faith, remember life always rewards those who doesn't give up easily give in to despair.

Conclusion

Now the market dumping now despite the Bitcoin halving which recently occured as opposed the bullishness we were expecting could be caused any of these reasons I have mentioned or it could also be all of them joined together, I mean we can never tell. But note though no one who has ever invested in Bitcoin for a long period like 5 years back is in loss now, which means despite the temporary price action we would recover for those patient enough to stick around, for such is the nature of the market.