Bitcoin Soars Above $65,000 Amid Reduced Geopolitical Tensions and Anticipation of Halving Event
Summary:
On April 19, Bitcoin's (BTC) price rapidly rose from $59,691 to over $65,000, supported by decreasing geopolitical tensions in the Middle East and the imminent Bitcoin halving event. Trading volume also jumped by 14%, signaling a surge in trader interest. While investors remain cautious due to the geopolitical climate, the halving, which happens every four years and reduces Bitcoin mining rewards, is expected to drive a post-event rally. Spot Bitcoin ETF approvals in the U.S. and Hong Kong may also impact the Bitcoin halving cycle, with predictions of a strong upward trend.
On Friday, April 19, Bitcoin (BTC) surged past the $65,000 mark, representing a 5% leap in a single hour, amidst shifting geopolitical tension in the Middle East. Records from Cointelegraph Markets Pro and TradingView reveal that BTC saw a rapid increase from an April 19 low of $59,691 to a peak of $65,574 within a day. At the point of writing, BTC was trading at $64,452, marking a 3.35% upswing in the past day. This rise was paired with a 14% increase in trading volume, which stood at $49 billion when the report was published, hinting at growing trader interest in the original cryptocurrency. Let's consider what's driving this surge in Bitcoin today.
Bitcoin bounced back from its dip overnight after comments from Israel and Iran suggested a lesser chance of escalating direct conflict. The BTC price dropped below $60,000 in the early hours of Asian trading on April 19 following reports of explosions at Isfahan airport in central Iran. A similar scenario played out on April 13 when Bitcoin saw volatility akin to that of Iran's attack on Israel, and it slumped 8.4%. These issues have unnerved traders of Bitcoin and similar assets this week.
Such dips however, have lessened as traders have sighed a breath of relief considering the limited scope of the Israeli strike and Iran's reported exclusion of any retaliatory attack. Yet, investment decisions remain skewed as investors stay cautious about the current geopolitical climate's implications on their investments.
Bitcoin swiftly survived the sell-off sparked by Middle Eastern geopolitical tensions, largely supported by the anticipated Bitcoin halving. Traders are watching for a potential rally post the event which takes place every four years and halves Bitcoin mining rewards from 6.25 BTC to 3.125 BTC.
Crypto analyst Rekt Capital is of the opinion that the Bitcoin "Danger Zone," wherein Pre-Halving price dips occur, has been effective. He also stated that the BTC price had dipped more than 18% during previous cycles. "The Bitcoin Halving is today. And that means the 'Danger Zone' is now officially over." According to OKX president, Hong Fang, the Bitcoin halving extends beyond its immediate effect on price and serves as a testament to the resilience of the cryptocurrency's economic model over time. Veteran Bitcoin advocate, Michael Saylor also voiced his enthusiasm about the BTC supply event.
While some remain skeptical that the halving could be a "sell-the-news" event, proponents argue that it is already priced-in. Interestingly, spot Bitcoin ETFs were approved in the United States in January and in Hong Kong this week. This is tipped to influence this year's Bitcoin halving cycle as most market participants anticipate a strong upward trend in the coming months. This article offers no investment guidance or recommendations. Crypto investments carry a degree of risk and it is advisable for readers to do their research before deciding.
Published At
4/19/2024 10:56:27 PM
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