Bitcoin (BTC) remained steady at around $63,700 following the cryptocurrency's fourth halving, an event that is upending the economic landscape for the miners who power the Bitcoin ecosystem.
At the start of Saturday (UTC time), BTC recently barely moved from its level just before the 840,000th Bitcoin block was mined. Bitcoin plunged to $59,685 on Friday before recovering to over $65,000.
Halvings have been a harbinger of a rise in the price of Bitcoin in the past, with the most recent one in May 2020 giving way to a rise from $9,500 to $65,000 the following year.
But this time, Bitcoin has already begun a meaningful rally to record highs, rising to $73,680 from $15,500 at the end of 2022, supported by optimism surrounding the approval of spot Bitcoin ETFs in the US and then by the resulting excitement after they started trading in January.
On Thursday, JPMorgan said it expects Bitcoin to fall after the halving as it remains in an “overbought state” due to high open interest in Bitcoin futures. Goldman Sachs added that macroeconomic conditions must support risk appetite for Bitcoin to replicate the success of previous cycles following halving events.
Bitcoin has been trading between $59,600 and $73,860 since February 28, with the upper limit of that range protected this week amid the growing conflict in Israel, which has impacted all capital markets.
According to Coinalyze, an April 12 selloff from $71,000 to $60,000 wiped $4 billion worth of open interest from the Bitcoin market. Across all exchanges except CME, the value is $16.1 billion.
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