Bitcoin Price Experiences Volatility Amid Israel-Iran Conflict Before Rebound
Bitcoin’s price has recently encountered extreme volatility, initially plummeting due to tensions between Israel and Iran before making a recovery. The occurrence of Bitcoin halving events continues to play a significant role in boosting investor sentiment.
The price of Bitcoin (BTC) dropped below $60,000, reaching a low of approximately $59,600 on Binance. This decline followed geopolitical tensions in the Middle East, leading investors to question the future of the cryptocurrency.
According to a report by ABC News, Israel initiated missile strikes against Iran, which was later confirmed by CNN. The attacks targeted various military bases and airfields in Iran. Israel’s retaliation was in response to Iran’s use of over 300 missiles and drones on Saturday. The news prompted a rapid reaction in the crypto market, causing Bitcoin to fall 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 more holders selling their positions rather than buying. Investors view Bitcoin as a risky asset and have been seeking 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 fall into the same category.
Furthermore, Ethereum (ETH), the second-largest cryptocurrency, also experienced a 2% decline to approximately $3,000 in response to the news of Israel’s retaliatory airstrikes. Other major cryptocurrencies saw declines ranging from 1% to 3%.
March Zheng, a managing partner at Bizantine Capital, predicted that if the market downturn persists, Bitcoin’s price could drop to $55,000. However, Jun-Young Heo, a derivatives trader at Presto, stated in a Telegram message that despite the panic sell-off in cryptocurrencies, it could still be an excellent opportunity to buy BTC.
Despite these bearish developments, the global crypto market has shown signs of recovery in the past 24 hours, with a 3.18% increase in market capitalization to $2.63 trillion. Bitcoin has climbed back above the $65,000 threshold.
At the time of writing, Bitcoin is trading at $65,115, marking a 3.87% surge within the last 24 hours. Additionally, market capitalization has increased by 3.6% to $1.2 trillion, while trading volume has surged 13.7% to $49 billion. The market seems to have moved past the tensions in the Middle East and is now focusing on the upcoming Bitcoin halving event.
The Bitcoin halving, scheduled for April 20th, is a significant event for both the network and the community. It will result in a halving of miners’ rewards from 6.25 to 3.125 BTC per block, ultimately regulating the supply with a maximum of 21 million BTC tokens ever issued. As previously reported, bulls expect BTC to experience a substantial rebound that could lead to the cryptocurrency reaching $80,000.
Similarly, ETH has also made a slight recovery, currently trading at $3,101, with a 5% increase in trading volume to $20.5 billion in the past day.
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