What is causing Bitcoin’s decline on April 20th?

On April 20, 2025, Bitcoin (BTC) is currently trading at around $84,612, marking a minor decrease of roughly 0.9% in the last 24 hours. With Easter being celebrated globally today, it is contributing to reduced trading volume and the dip in Bitcoin’s price.

Numerous factors are playing a role in today’s downward trend:

1. Increased Geopolitical Tensions and Economic Uncertainty:
Ongoing trade disputes, particularly between the U.S. and China, have sparked higher market volatility. Investors are adopting a risk-averse approach, moving away from volatile assets like cryptocurrencies and shifting towards traditional safe-havens such as gold. The surge in gold prices signifies a preference for more stable investments during uncertain times.

2. Market Sentiment and Technical Indicators:
The Crypto Fear & Greed Index has fallen to a score of 25, indicating extreme fear among investors. Analysis of Bitcoin’s Relative Strength Index (RSI) reveals it has dropped to 30, placing it in an oversold position. Furthermore, the Moving Average Convergence Divergence (MACD) indicator has shifted into bearish territory, suggesting the potential for further declines.

3. Futures Market Activity:
There is a decline in open interest within the Bitcoin futures market, which suggests that traders are closing out positions and reducing their exposure. This decrease in speculative trading can lead to lower liquidity levels and increased price fluctuations.

4. Post-Halving Market Adjustment:
Following the most recent halving event in the Bitcoin market, there is a period of adaptation taking place. Historically, such periods are marked by heightened volatility as miners and investors adjust their strategies in response to reduced block rewards.

5. Profit-Taking and Market Corrections:
After Bitcoin’s significant surge earlier this year, achieving an all-time high of over $100,000, some investors are taking profits by selling off their holdings. This profit-taking activity is contributing to the current price decline as the market goes through a natural correction process.

In conclusion, today’s decline in Bitcoin’s price is influenced by various factors, including geopolitical tensions, negative market sentiment, technical indicators pointing towards potential further declines, adjustments post-halving event, and profit-taking behaviors. These elements combine to create the current market situation for Bitcoin.