During Asian trading hours on Thursday, Bitcoin fell below $61,400. CoinDesk Index data shows that behind this decline is a large-scale sales wave in risky assets. Difficult economic conditions make investors nervous, and this reduces interest in cryptocurrencies, including Bitcoin.

There may be several reasons why Bitcoin is relatively less affected while the overall market remains negative. The first of these is the upcoming halving. This event, in which Bitcoin’s mining reward will be halved, could restrict supply and push the price of Bitcoin up in the long run. The intense interest in the halving also supports this idea. Interest in halving in Google searches has reached an all-time high, surpassing searches in the 2020 halving. This shows that investors have high expectations for the halving.

A second reason is the general tendency to avoid market risk. Investors may seek safer havens in an uncertain economic environment. While Bitcoin still has high volatility compared to traditional assets, it is viewed as digital gold by some investors and could therefore become an option for those looking for stability.

Although Bitcoin has been relatively less affected, the overall situation of the cryptocurrency market is not positive. Layer-1 tokens and altcoins experienced steeper declines than Bitcoin. For example, leading layer-1 tokens like Solana (SOL) lost over 20% in value last week. Avalanche (AVAX) fell 26%, Cardano (ADA) dropped 23% and Filecoin (FIL) dropped 30%.

There is a similar situation in Artificial Intelligence tokens. These tokens, which were once the favorites of the market, have suffered serious losses in value. The value of some AI tokens dropped by double-digit rates last week. This shows that investors’ recent tendency to move away from risky investments has also affected the altcoin market.

Even though the price of Bitcoin has fallen, its market dominance has increased, which is a remarkable development. Bitcoin dominance indicates Bitcoin’s share of the total cryptocurrency market in terms of market cap. This rate is currently at 55.19% and has increased by 1.35% in the last week and 2.5% in the last month.

The increase in Bitcoin dominance can be interpreted in two ways. First, investors are looking for less risky assets and therefore turn to Bitcoin. The second is the general negative trend in the altcoin market and the exit of investors from this market.

Bitcoin’s recent performance may not be interpreted clearly. On the one hand, the upcoming halving and the risk-aversion tendency of investors may have increased the interest in Bitcoin. On the other hand, Bitcoin’s price has been affected by general market conditions, and the bleeding in the altcoin market shows that the general health of the cryptocurrency market is not good.

Analysts agree on this: Bitcoin’s course in the coming period will largely depend on global market conditions. If there are signs of recovery in the economy, investors may return to risky assets, which could create a movement from Bitcoin to altcoins. However, if economic uncertainties persist, Bitcoin may continue to be perceived as a relatively safer haven and increase market dominance.

The cryptocurrency market is quite dynamic and full of volatility. It is difficult to predict exactly how Bitcoin’s upcoming halving will affect the market. Therefore, it is important for investors to do their own research, follow market conditions closely and make investment decisions appropriate to their risk tolerance. Experts also emphasize the importance of investing in a diversified portfolio and not in a single asset.