HOOD - 4 Solid Crypto Stocks to Bet on Ahead of Next Bitcoin Rally | Benzinga
The cryptocurrency rally came to a sudden halt in April after a robust 2023 and first quarter. The first quarter saw Bitcoin (CRYPTO: BTC), the world's most popular cryptocurrency, hitting an all-time high of $73,750.
However, Bitcoin has since retreated sharply, with its price hovering around $68,000 on May 23. In fact, Bitcoin has fallen 15% since hitting an all-time high on Mar 14.
One of the major reasons behind the decline is the recently concluded halving event, which takes place once in four years. The halving event cuts the block reward by half, aiming to limit Bitcoin's total supply to 21 million coins. As a result, the reduced rate of new Bitcoin issuance typically leads to increased demand for the cryptocurrency, which in turn tends to drive up its price.
Also, Wall Street suffered in April after a first-quarter rally, as concerns grew over rising inflation. This led to the optimism surrounding rate cuts fading fast as investors feared that the Federal Reserve could keep interest rates higher for a longer period.
High interest rates have a negative impact on growth assets such as technology stocks, consumer discretionary stocks, and cryptocurrencies.
However, Bitcoin still has a lot of potential. Year to date, Bitcoin has gained 54% after increasing 207% in 2023. The halving event has also concluded.
Also, the cryptocurrency has jumped more than 50% since the launch of the ...