Bitcoin has experienced a rollercoaster ride in terms of its price volatility, initially plummeting due to tensions between Israel and Iran, before making a strong recovery. Investors are closely watching these developments and questioning the future of the cryptocurrency.
According to ABC News, Israel launched missile strikes against Iran, with CNN confirming the attacks on military bases and airfields in Iran. In response to Iran’s previous missile and drone attacks, Israel retaliated, causing Bitcoin to drop below $60,000. However, the cryptocurrency has since rebounded and is currently priced above $65,000.
The drop in Bitcoin’s price is attributed to investors selling their holdings and seeking safer assets like gold, silver, the US dollar, and bonds. Bitcoin analyst Tuurà commented on the escalating conflict, stating that Bitcoin, commodities, and gold are all affected by such events.
Furthermore, Ethereum, the second-largest cryptocurrency, also experienced a 2% decline to around $3,000 following the news of Israel’s airstrikes. Other major cryptocurrencies also saw declines ranging from 1 to 3%.
Market experts have differing opinions on the future of Bitcoin’s price. March Zheng, a managing partner at Bizantine Capital, believes that if the market downturn continues, Bitcoin could fall to $55,000. However, Jun-Young Heo, a derivatives trader at Presto, sees this as a prime opportunity to buy BTC despite the panic selling.
Despite these bearish twists, the global crypto market has shown signs of recovery in the past 24 hours. Market capitalization has increased by 3.18% to $2.63 trillion, with Bitcoin surpassing the $65,000 mark. Bitcoin’s price surge has been accompanied by a 3.6% increase in market capitalization to $1.2 trillion and a 13.7% surge in trading volume to $49 billion. The market seems to have shifted its focus from Middle East tensions to the upcoming Bitcoin halving event.
The Bitcoin halving, scheduled for April 20th, is a significant event for the network and the community. It involves reducing miners’ rewards from 6.25 to 3.125 BTC per block, aiming to regulate the supply. With only 21 million BTC tokens ever issued, bulls are optimistic that this event will lead to a substantial rebound, pushing the cryptocurrency to $80,000.
Similarly, Ethereum has also experienced a slight recovery, trading at $3,101, with a 5% increase in trading volume to $20.5 billion in the past day.
For those interested in Bitcoin, it is recommended to refer to the Buy Bitcoin Guide, Bitcoin Wallet Tutorial, and Check 24-hour Bitcoin Price for more information. Additionally, staying updated with the latest Bitcoin news is crucial in understanding the market trends and developments.