Bitcoin Aims to Recover From 15% Dip amid Geopolitical Tensions & Upcoming Halving
Summary:
As Bitcoin battles to reclaim ground following a 15% dip, traders are witnessing early recovery signs. The market is also reflecting on geopolitical influences reminiscent of the March 2020 crash. Altcoins have suffered the most from the sharp market reaction, but Bitcoin manages to hold onto its $60,000 support. The week ahead sees the crypto market monitoring macroeconomic data and Federal Reserve commentary in addition to the block subsidy halving. Hong Kong regulators have reportedly greenlit Bitcoin and Ether ETF trading, inciting future Chinese participation anticipation. Despite the weekend's setbacks, crypto market sentiment remains greedy and mostly optimistic.
The start of the week sees Bitcoin (BTC) facing a battle to reclaim lost ground after its price dipped 15%. Following a frightful weekend for cryptocurrency, traders are regrouping, with Bitcoin showing early signs of recovery. Observers will be keeping a close eye on how geopolitical issues will impact the coming week, drawing comparisons between recent Middle East disturbances and the coronavirus-induced market crash in March 2020. Up to this point, altcoins have been hit hardest by the sharp market reaction to tensions between Israel and Iran, though BTC/USD has managed to hang onto $60,000 support. Nonetheless, a thorough purge occurred in the leverage market, resulting in an instantaneous disappearance of 30% of open interest, including Bitcoin. Challenges abound in the coming days, including considerable volatility and the anticipated block subsidy halving for Bitcoin.
The reality of the crash hitting the crypto market over the weekend was a uniquely hair-raising experience for many. As fresh news of geopolitical destabilization in the Middle East rolled in, losses in the crypto market, which operates 24/7, were immediate. Similar to disturbances in Ukraine early in 2022, Bitcoin and altcoins saw rapid sell-offs, with BTC/USD experiencing lows of just over $61,000. Altcoins were hit even harder, with some losing up to half of their value before starting to claw their way back up alongside BTC/USD. As reported by Cointelegraph, Bitcoin's dominance over the combined crypto market cap attained a three-year high last week.
The extraordinary extent of these moves caught some off-guard, though seasoned analyst Matthew Hyland proposed that in retrospect, signs of a sudden correction had already been present. Order book data suggests that liquidity continues to shift in major exchange Binance. While all eyes are on existing volatility and pricing for Bitcoin in the lead-up to its next block subsidy halving, those focused on the crypto market will also be monitoring the regular mix of U.S. macroeconomic data and commentary from senior Federal Reserve officials, including Chair Jerome Powell.
Moreover, the week could see further market sensitivity due to the intensifying situation in the Middle East amid already jittery risk assets. Key jobless claims data will release on April 18, with Jerome Powell slated to speak on April 16. Inflation remains a crucial factor for traders, many of whom have been assuming the odds for interest rate cuts to arrive earlier within the year. CME Group’s FedWatch Tool's latest estimates peg the chance of a 25-basis-point rate cut at the Fed’s July meeting at 43%, moving up to 45% for September.
On the precipice of Bitcoin’s imminent block subsidy halving, many traders are focusing more on price fluctuations than the significant network event that has been on countdown for several months. Miner wallets saw a largely unchanged BTC balance since the end of March, according to data from on-chain analytics firm Glassnode.
Also, reports indicate that Hong Kong regulators have approved Bitcoin and Ether (ETH) ETFs for trading, a development that is generating excitement around potential future Chinese engagement. The sentiment remains wholly "greedy" despite hopes for a sustained crypto price recovery. The Crypto Fear & Greed Index, a popular sentiment gauge, even after the weekend's heavy losses, shows investors are holding steady.
Despite the tumultuous weekend, a survey by WhalePanda suggests a degree of optimism among market observers, with a small majority still foreseeing a revisit of $70,000 by next weekend.
Published At
4/15/2024 11:12:08 AM
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