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Bitcoin in April: Halving Price Fallout, Network Peaks and ETF Updates


Veronika Rinecker

Last updated:

| 18 min read

Bitcoin in April: Halving Price Fallout, Network Peaks and ETF Updates

In April 2024, Bitcoin faced its sharpest price drop since the FTX collapse, with halving charts in focus, but network activity soared to record highs, driven by new protocols and ETF developments. This report explores and analyzes Bitcoin’s ecosystem and the BTC price developments last month.

Key takeaways:

  • The Bitcoin price dropped following the fourth halving, reaching $57,000 before a quick rebound. This marks the sharpest decline since the FTX collapse.
  • Despite the price drop, the Bitcoin network saw a surge in activity in April, with daily transactions reaching a record high of 927k on April 23. However, this increase was short-lived, and it dropped again by the end of the month.
  • The surge in network activity led to record-high transaction fees in April, peaking at $25.8 million on April 24. This congestion might be linked to the Runes protocol launch.
  • Spot Bitcoin ETFs saw $343.5 million withdrawn from the funds in April – the first monthly net outflows since trading began in January.
  • While US ETFs faced outflows, Hong Kong launched its first three spot Bitcoin ETFs in April, potentially becoming a hub for Asian crypto investment.
  • Bitcoin Ordinals NFTs gained traction, reaching a $2.3 billion valuation, despite Binance ending support due to potential network strain.
  • Bitcoin remained the leader in NFT sales volume in April, generating over $594 million compared to other blockchains.

What You’ll Find in This March Bitcoin Analysis:

    1. What is Bitcoin?
    2. BTC Price Performance And Halving Charts
    3. Bitcoin’s Network Activity and Fees
    4. Spot Bitcoin ETFs
    5. Bitcoin Mining Updates
    6. Bitcoin DeFi Updates
    7. Bitcoin Ordinals NFTs
    8. Bitcoin NFTs lead the market
    9. Looking ahead – Can the Bitcoin Halving Charts be Inversed?

What is Bitcoin?


Bitcoin (BTC) is a decentralized cryptocurrency created to function as a digital currency and means of payment that operates independently of any single individual, organization, or authority, eliminating the need for third-party intermediaries in financial transactions.

It is allocated to blockchain miners to validate transactions and can be purchased through various exchanges.Unveiled to the public in 2009 by an enigmatic developer or group known as Satoshi Nakamoto, Bitcoin has become the most widely recognized cryptocurrency in the world. Its success has spurred the creation of numerous other cryptocurrencies.

BTC Price Performance And Halving Charts


While widely anticipated, Bitcoin’s fourth halving on April 20 followed the historical trend of short-term volatility. Bitcoin fell nearly 21% in April alone, dropping below $60,000 on April 19 as investors cashed out of a robust rally that had previously pushed prices above $72,500 (on April 8). Between April 30 and May 1, the Bitcoin price crashed below $57,000, its lowest level since late February.

BTC/USD daily chart. Source: TradingView

Interestingly, past halving events also exhibited similar patterns. According to Glassnode data, while the first halving saw an immediate 11% gain, the subsequent two halving events saw price stagnation after two weeks. The 60-day period following halvings often shows choppy sideways movement, and price drops between -5% and -15%.

BTC price performance after halving. Bitcoin halving chart
BTC price performance after halvings. Source: Glassnode

According to 10x Research CEO and senior analyst Markus Thielen, Bitcoin could further fall to $52,000. The analyst predicts a drop to $52,000, citing a slowdown in the main driver of the rally – inflows into Bitcoin exchange-traded funds (ETFs), which dropped in April.

Fidelity Digital Assets downgraded Bitcoin’s outlook to “neutral” after Q1. Its Q1 2024 Signals Report suggests that Bitcoin is no longer “cheap” and undervalued. The analysts also see potential selling pressure from long-term holders and high overall profitability. According to VanEck, 94% of Bitcoin addresses remain in profit despite a slight decline of 4% over the month.

Analysts at Bitfinex, on the other hand, are more positive and predict Bitcoin will consolidate for 1-2 months after the halving. The experts expect Bitcoin to remain the market leader and believe the economic situation is more stable than in past halvings. This could lead to sideways trading with swings of $10,000, with any price increase from the halving happening later.

Looking for a Bitcoin Price Prediction?

Bitcoin’s Network Activity and Fees


Bitcoin’s price dipped after the halving, but network activity boomed. Daily transactions increased by 135% after the halving, reaching 927k on April 23. However, this recovery was short-lived, and the number of daily transactions dropped again by the end of the month, reaching 403k transactions on April 30.

Number of daily transactions on Bitcoin in April 2024
Number of daily transactions on Bitcoin in April 2024. Source: Artemis

Bitcoin’s daily active addresses saw a rollercoaster ride in April. Starting at 605k on April 1, the number climbed to 640k by April 4. However, it then took a sharp dip to 269k on April 20, the day after the halving. Activity recovered somewhat, reaching 483k by the end of the month.

Number of active addresses on Bitcoin.
Number of active addresses on Bitcoin. Source: Artemis

Average daily transaction fees on Bitcoin surged to a record $25.8 million on April 24 before falling back to $6,15 million on April 30. The average fee in April was $16.77. Similarly, average individual transaction fees on Bitcoin spiked to $40 on April 24 and dropped to $11,92 on April 30.

Bitcoin managed to attract more capital in April and reached $1.4 billion in total value locked (TVL), an increase of 94% compared to TVL on April 2 ($724 million).

Bitcoin’s total value locked in April 2024.
Bitcoin’s total value locked in April 2024. Source: Artemis

The 2024 halving block has become the most expensive block ever mined in Bitcoin’s history, with users scrambling to inscribe rare assets via the Runes protocol. Users spent a whopping 37.7 Bitcoin (over $2.4 million) to secure a spot, according to data from Bitcoin block explorer Mempool.space.

Bitcoin users spent a record $2.4M in fees on the first halving block
Bitcoin users spent a record $2.4M in fees on the first halving block. Source: Mempool.space

High fees on the Bitcoin halving block were fueled by a surge in demand for rare digital inscriptions and new token creation. This frenzy was driven by the launch of Casey Rodarmor’s Runes protocol, which allows users to create tokens directly on the Bitcoin network, coinciding with the halving event.

Runes offers an alternative to existing methods like the BRC-20 token standard – an Ordinals-based method for creating Bitcoin-based tokens. Both leverage Bitcoin’s network, but Runes utilizes a more efficient Unspent Transaction Output (UTXO) model, unlike the “inscription” method of BRC-20s.

Amid increasing Bitcoin use for day-to-day purchases, the Bitcoin network recorded the highest number – 1.63 million – of confirmed payments on April 23.

The total number of confirmed payments per day during April 2024
The total number of confirmed payments per day during April 2024. Source: Blockchain.com

This massive spike was also driven by the launch of the Runes protocol. According to Dune Analytics data, Runes accounted for a whopping 81.3% of all Bitcoin transactions that day. However, Bitcoin is making a comeback, reclaiming 82,6% of transactions by April 30. Other protocols like Ordinals (2,6%) and BRC-20 (0,7%) comprise a smaller portion of the network activity.

Spot Bitcoin ETFs


April 2024 was a whirlwind for spot Bitcoin ETFs. After a period of immense enthusiasm and record inflows in Q1 2024—attracting $1.5 billion, $6 billion, and $4.6 billion in January, February, and March, respectively—April saw a significant shift in sentiment, with outflows surpassing inflows for the first time since the Bitcoin ETFs launched in January.

In April, spot Bitcoin ETFs saw $343.5 million withdrawn from the funds, ending their three-month inflow streak. The initial inflows surge slowed significantly after peaking at $1.05 billion daily in mid-March. This coincided with a drop in Bitcoin’s price, which fell 18% from its all-time high by the end of April.

Grayscale’s GBTC fund saw the most significant outflows at $2.5 billion. ARK Invest’s ARKB and Valkyrie’s BRRR also experienced minor outflows.BlackRock’s IBIT initially attracted the most inflows in April ($1.5 billion), followed by Fidelity’s FBTC and Bitwise’s BITB. However, IBIT’s impressive 71-day inflow streak ended on April 23 and has seen zero flows for five consecutive days since. The trend continued on April 30. ARKB was the only ETF with inflows ($3.6 million), while outflows from GBTC, FBTC and BITB resulted in a net outflow of $161.6 million for the day.

Total spot Bitcoin ETF net inflow in USD
Total spot Bitcoin ETF net inflow in USD. Source: Coinglass

Bitcoin ETFs’ trading activity also slowed significantly during the last month. After hitting a record daily volume of $9.9 billion on March 5 (coinciding with Bitcoin surpassing its previous cycle high), trading volume fell to $2.9 billion on April 30.

BlackRock updated its Bitcoin ETF

On April 5, BlackRock, a leading asset manager, updated their Bitcoin ETF prospectus, adding five new authorized participants: ABN AMRO Clearing, Citadel Securities, Citigroup Global Markets, Goldman Sachs, and UBS Securities. This move adds to the existing roster of authorized participants, including JPMorgan, Jane Street Capital, Macquarie Capital, and Virtu Americas. By incorporating these big Wall Street players, BlackRock could increase liquidity and attract more institutional interest in their Bitcoin ETFs.

Hong Kong launched Asia’s first Bitcoin ETFs

While US spot Bitcoin ETFs have dominated headlines recently, April marked a significant shift. The Hong Kong Stock Exchange (HKEX) debuted three new spot Bitcoin ETFs on April 30, offering investors exposure to these leading cryptocurrency-based products. These include Bosera HashKey Bitcoin ETF (3008.HK), ChinaAMC Bitcoin ETF (3042.HK), and Harvest Bitcoin Spot ETF (3439.HK). This launch positions Hong Kong as a potential hub for Asian cryptocurrency investment.

However, the inflows from the launched spot Bitcoin ETFs in Hong Kong were not enough to cover the outflows from the 11 US-based spot Bitcoin ETFs.



Read More: Bitcoin in April: Halving Price Fallout, Network Peaks and ETF Updates

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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