Bitcoin price on its way to first red month since August

Something really crazy has to happen if bitcoin (BTC) does not end the current month in the red. It would mean the end of an impressive green streak. Bitcoin has seen an increase every month since September last year. Is April’s price drop the start of a longer downward trend or could bitcoin return to its former form next month?

BTC price down 14%

Bitcoin opened the month of April at a price of around $71,300. Meanwhile, with just half a day to go until the new month arrives, the price is down more than 14 percent at $61,200. It marks the first monthly decline after no less than seven green months.

September last year started with a bitcoin price of roughly $26,000. Since then, the price has experienced a gigantic rise, mainly due to the bitcoin spot Exchange-Traded Funds that were launched in the United States in January.

Confidence in the crypto community that the American Securities and Exchange Commission (SEC) would finally give the green light in January, after years of rejecting every application, increased by the week. This has logically given the bitcoin price a significant boost. Once the funds entered the stock exchanges, the inflow of billions also lifted the price to new heights.

All things considered, we can conclude that the bitcoin bull market has started with full conviction since September. In March, the massive run reached its boiling point, with a new all-time high of almost $74,000.

Since then, the BTC price has had to let off a lot of steam, especially over the past three weeks. Various factors can be identified for the downward trend. First of all, a price drop like this can be called more than healthy after it has crashed for so many months in a row. In addition, tensions in the Middle East as well as increased inflation in the United States play a major role in the current fearful crypto sentiment.

Bitcoin halving behind us

The famous Bitcoin halving took place last month. About a week and a half ago, the rewards for Bitcoin miners were halved from 6.25 BTC to 3.125 BTC.

Many crypto investors may have expected that the reduced inflation would immediately cause a price increase. In fact, the opposite has happened, which has further depressed market sentiment.

However, after the previous halvings, it also took several weeks or even months before an explosive price increase was ushered in. Of course, past results do not provide any guarantee for the future, but the price drop in recent weeks does not seem to be much of a cause for concern.

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