CRYPTO MOVERS AND PRICES
After a volatile weekend, BTC is trading on either side of USD 9,000. The BTC halving event took place early this afternoon.
CRYPTO STORY OF THE DAY
Bitcoin's (BTC) 3rd block mining reward halving event takes place today. After trending higher last week, crypto gapped down over the weekend. We believe that many halving-related price predictions relied on data with overly small sample size.
After a great week for crypto which also included a string of positive announcements, BTC is now the only coin higher in the Top 10. On Saturday night, the space was gradually declining before an abrupt drop which brought BTC from ~9,400 to ~8,100 in about 5-minutes. While BTC outperformed last week, the decline saw all the Top 10 fall in tandem. As a result, BTC dominance has risen to just shy of 68%, threatening a move to multi-year September highs at ~70%. The event is likely to take place in the next 5 or 6-hours.
Takeaway: Not only had bullish halving predictions been based on a small sample size but prior halving events took place in extremely different environments in crypto on both a macro and micro level. The surprise move Saturday night highlighted the vulnerabilities of relying on this relatively weak precedent. Trading caution is the prudent order of the day over bold, directional price predictions.