- Bitcoin suffered a major price retrace in the wake of the recent Israel-Iran conflict.
- The broader crypto market experienced significant losses.
- Analysts have shared contrasting forecasts for the expected BTC performance upon the 4th halving.
Over the past weeks, escalating geopolitical tensions have sent shockwaves across the crypto industry. The recent Iran-Israel aggression has taken a major toll on the asset class, first occurring on April 12, when Bitcoin and other crypto assets took a tumble to new lows.
Less than five days later, the market succumbed to another crash triggered by war-related tensions, causing Bitcoin to plummet well below its retest level. However, despite these challenges, the token is displaying signs of recovery.
BTC Suffers 2nd Below $60K Crash
According to Bitcoin’s trading data on Friday, April 19, the token is trading at $64,805 at press time. This marks a 5% uptick over the last four hours, amid the token’s ongoing recovery from its crash earlier in the day.
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The Bitcoin crash, which saw the token decline approximately 6% from its day peak of nearly $64000 to $59,600, occurred in the wake of the news of an Israeli attack on Iranian city Ghajaworstan, triggering widespread panic across major markets.
While BTC has quickly rebounded, the token remains at an 8.3% loss over the past seven days and is trading nearly 12% below its all-time high price of $73,738.
Bitcoin’s price performance has cast a shadow on its credibility as a ‘safe-haven’ asset. Weighing in on the price slump, economist Peter Schiff stated that the contrasting performance witnessed in Gold and Bitcoin, which saw the former record an immediate 1.6% as opposed to Bitcoin’s 6% decline weakens its market position, positioning it as a “highly speculative token.”
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Beyond the uncertainty stirring from the token’s response to the escalating geopolitical tensions, BTC’s price performance ahead of the upcoming halving has also cast a spotlight on its potential to uphold its position.
Will Halving Highs Defy Current Lows?
The historical trend of the quadrennial event to trigger a lasting uptick for the asset class is driving optimism for the fast-approaching fourth bitcoin halving. However, while many expect that the event will replicate past successes and drive the asset to new heights, others chart a more cautious outlook for the crypto giant.
Analysts at traditional financial institution JPMorgan asserted that the token will likely suffer a price retracement, as opposed to the highly anticipated uptick. The predictions hinge on the argument that the upcoming halving is likely priced in, evidenced in the $73,000 all-time high range already witnessed earlier in the March 2024 bitcoin-led market rally.
Echoing the sentiment, Bitcoin ETF issuer Bitwise asserted that the token is expected to experience a sluggish immediate impact upon the completion of the event. However, charting a more optimistic outlook, the firm added that the performance will precede the commencement of a price surge, which could mirror the bullish trends previously witnessed in the industry.
On the Flipside
- The 4th Bitcoin halving is scheduled to occur on April 19, 2024.
- The US Treasury Department has flagged the crypto asset class as an enabler of illicit terror financing.
- In 2022, the crypto market recorded over $240 million in liquidations after Russian troops moved to Ukraine.
Why This Matters
The recent decline in Bitcoin’s price underscores its vulnerability to economic factors including geopolitical tensions and negative market sentiment. However, the ongoing consolidation in the token’s price equally highlights its ability to rebound.
Read more about this analysis of the upcoming Bitcoin halving:
Is the 4th BTC Halving Priced In? JPMorgan Says Rally Unlikely
Following BTC’s previous crash, market analysts weighed in on its impact. Read more:
“Bitcoin crashing to $64,000 was a dream” Pomp Re-frames Crash
