The cryptocurrency market is deep in the red this weekend and today, April 14th, 2024, as the looming Bitcoin halving event appears to be weighing on prices. The overall market capitalization has dropped by 6.15% to $2.31 trillion. Leading the market decline is Bitcoin (BTC), which has fallen 4.25% on the day to trade at $64,594.85 as of writing today. The world’s largest cryptocurrency by market cap has been on a bearish trend lately, declining 7.09% over the past week and a massive 11.71% over the past month.

Cryptocurrency Heat Map (COIN360)

One of the main factors contributing to Bitcoin’s recent downturn is the highly anticipated halving event, which is now just five days away. The halving will see the reward for Bitcoin miners cut in half, resulting in a slower pace of new BTC entering circulation.

While some analysts view this supply constriction as bullish over the long-term, there appears to be some profit-taking and market jitters in the short-term lead up. The halving countdown shows that just 827 blocks remain until the supply cut occurs at block 840,000, representing 99.61% of the way through the current cycle. Analysts say Bitcoin will be harder money than gold after the halving and we expect it to be on a parabolic uptrend in the near future

Elsewhere, Ethereum (ETH) is holding above the $3,000 level but has declined 7.52% on the day and 23.17% over the past month. The world’s second largest cryptocurrency received some positives after developers approved the EIP-3074 proposal to cut gas fees and improve the wallet experience, despite some security tradeoffs.

Other major cryptocurrencies are also having a rough weekend as well. BNB has declined 7.06%, Solana is off 8.32%, XRP has plunged 10.8%, and Dogecoin has plummeted nearly 12%. Polygon (MATIC) and Chainlink (LINK) have both dropped around 11%. Toncoin (TON), is down 5.45%. 

Overall, the crypto market is flashing red amid profit-taking ahead of this week’s highly anticipated Bitcoin halving event. While long-term bullish catalysts remain for many major assets, the near-term volatility is keeping traders on edge.

The halving marks a pivotal moment for Bitcoin that could accelerate its transition toward becoming a true store of value and molecular unit of money. Markets tend to get volatile and emotional around these events, but the fundamentals keep improving. With just days until the code is triggered to slash new Bitcoin issuance, this week will be a crucial test for the resolve of crypto’s recent bull market. Will the pre-halving selloff represent a buying opportunity or a sign of more turbulence?