Crypto Market Dives as Bitcoin Halving Looms Large

Bitcoin (BTC) faced selling pressure on Tuesday ahead of its reward halving event, dropping 5.7% to $65,742. The halving, expected on April 21, reduces BTC production by 50%. Meanwhile, Ethena Labs opened claims for its new governance token, ENA, with 5% of the total supply airdropped to USDe holders, leading to an 8% rise in ENA's value. Deribit, a major crypto options exchange, obtained a conditional VASP license in Dubai, allowing it to operate as a virtual asset exchange once conditions are met.

Cryptocurrency Market Experiences Downturn as Bitcoin Halving Approaches

The cryptocurrency market has faced a downturn, with Bitcoin (BTC) leading the decline as its reward halving event draws near. Bitcoin, the most valuable cryptocurrency by market capitalization, plunged by 5.7% on Tuesday morning, dropping to $65,742. This marked a bearish end to a week-long consolidation period between $68,000 and $72,000.

The halving event, scheduled for April 21, will witness a 50% reduction in the issuance rate of new Bitcoin. Analysts, however, believe that the market has already anticipated this event, reducing the likelihood of significant price fluctuations.

"As we approach the halving, Bitcoin has set a new record high and may be reluctant to continue its climb before undergoing a much-needed period of correction and consolidation," stated LMAX Digital in a morning note.

Broader Crypto Market Suffers Losses

The broader cryptocurrency market also experienced losses, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) posting even steeper declines. The CoinDesk 20 index, a benchmark of major cryptocurrencies, tumbled by nearly 8%.

Ethena Labs Introduces New Governance Token

Ethena Labs, a decentralized finance (DeFi) protocol behind the yield-earning stablecoin USDe, has launched the airdrop of its new governance token, ENA. USDe holders are eligible to claim their share of 750 million ENA tokens, representing 5% of the total supply.

Following the airdrop, ENA's price surged over 8%, reaching approximately 64 cents with a market capitalization of nearly $500 million, according to CoinGecko data.

Deribit Obtains Conditional VASP License in Dubai

Deribit, a leading global crypto options exchange, announced that its subsidiary Deribit FZE has received a conditional Virtual Asset Provider (VASP) license from the Dubai Virtual Asset Regulatory Authority (VARA).

This license authorizes Deribit FZE to operate as a virtual asset exchange for spot and derivatives trading, but it remains nonoperational until Deribit fulfills all remaining conditions and local requirements. Once operational, Deribit will be able to serve institutional and qualified investors within the Dubai jurisdiction, while continuing to provide services to retail investors through its Panama-based broker affiliate.