The volatility of the Bitcoin price has been evident recently, as it initially dropped due to tensions between Israel and Iran before bouncing back. Bitcoin halving events continue to play a significant role in boosting investor sentiment.
Bitcoin’s price recently fell below $60,000, reaching a low of around $59,600 on Binance. This decline was a result of geopolitical tensions in the Middle East, leading some investors to question the future of the cryptocurrency.
According to ABC News, Israel launched missile strikes against Iran, and CNN confirmed that several military bases and airfields were targeted. This attack was in retaliation for Iran’s use of over 300 missiles and drones on Saturday. The crypto market reacted swiftly to this news, causing Bitcoin to drop below $60,000. However, Bitcoin has since recovered and is currently priced above $65,000.
The drop in Bitcoin’s price can be attributed to holders selling their positions instead of buying. Investors considered Bitcoin a risky asset and sought refuge in other asset classes such as gold, silver, the US dollar, and bonds.
Bitcoin analyst Tuurà commented on the escalating war between Iran and Israel, stating that Bitcoin, commodities, and gold are all affected by such conflicts. Ethereum (ETH), the second-largest cryptocurrency, also experienced a 2% decline to approximately $3,000 following Israel’s retaliatory strikes. Other major cryptocurrencies saw declines ranging from 1% to 3%.
March Zheng, a managing partner at Bizantine Capital, suggested that if the market downturn continues, Bitcoin’s price could drop to $55,000. However, Jun-Young Heo, a derivatives trader at Presto, believes it could still be an excellent opportunity to buy BTC despite the panic selling in the cryptocurrency market.
Despite these bearish developments, the global crypto market has gained momentum, with market capitalization increasing by 3.18% to $2.63 trillion in the last 24 hours. Bitcoin has returned above the $65,000 threshold and is currently trading at $65,115, representing a 3.87% surge. The market capitalization has also increased by 3.6% to $1.2 trillion, and the trading volume has surged by 13.7% to $49 billion. The market seems to have moved past the Middle East tensions and is now focusing on the upcoming Bitcoin halving event.
The Bitcoin halving, scheduled for April 20th, is a significant event for the network and the community. It will reduce miners’ rewards from 6.25 to 3.125 BTC per block, aiming to regulate the supply with a maximum of 21 million BTC tokens ever issued. Bulls are anticipating a massive rebound in BTC’s price, with some predicting it could reach $80,000.
Similarly, Ethereum has also experienced a slight recovery, with its price trading at $3,101 and its trading volume increasing by 5% to $20.5 billion in the past day.
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