Bitcoin bounced back from sharp losses triggered by escalating geopolitical tension, regaining ground as the situation eased. After plummeting over 6% to $59,643 earlier on Friday, the digital asset stabilized around $64,450 as of 8:53 a.m. in London. Other cryptocurrencies like Ether, Solana, and Dogecoin also found stability.
Israel’s retaliatory strike on Iran, following Tehran’s recent rocket and drone attacks, rattled global markets. However, reports reassuring the safety of nuclear facilities in Isfahan helped alleviate some concerns. Traditional safe-haven assets like bonds, gold, and the dollar pared gains, while stocks and US equity futures recovered from session lows.
Amidst the Middle East conflict, the spotlight remains on Bitcoin’s halving event scheduled for later on Friday, which will reduce new token supply.
Historically, halvings have driven up the price of Bitcoin. However, this time, Bitcoin hit a record high in mid-March prior to the event, raising questions about whether its potential impact has already been factored into the market.
Stefan von Haenisch, head of trading at OSL SG Pte, noted that ongoing Israel-Iran violence could create a “general risk-off sentiment across crypto.” Nonetheless, he believes it would require a “significant move lower” to reverse the bullish sentiment surrounding the halving.
Analysts at JPMorgan Chase & Co. and Deutsche Bank AG have suggested that the quadrennial halving is already largely priced in by investors. Ahead of the event, a group of three-month-old spot-Bitcoin exchange-traded funds in the US have witnessed five consecutive days of net outflows.
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Source: https://cryptocurrencynews.com/bitcoin-steady-amid-geopolitical-tension-halving-nears/
