In a dramatic resurgence, Bitcoin (BTC) pushed past the ,000 mark on Friday, erasing losses from a recent dip below ,000. The cryptocurrency continues to navigate market volatility ahead of its eagerly anticipated halving event this week.
CoinDesk’s Data Reveals Bitcoin’s Climb
At approximately 6:15 a.m. ET, CoinDesk reported Bitcoin’s price at ,739.04, a significant 5% increase from the previous day.
Cryptocurrency Market Shows Signs of Bullish Momentum
Other cryptocurrencies also experienced a surge. Ether (ETH) climbed over 3%, while Solana (SOL) impressed with a gain of approximately 10%.
Halving Event Anticipation Fuels Market Activity
This price volatility coincides with the impending halving of Bitcoin rewards for miners, scheduled to occur this week. This process, written into Bitcoin’s code and occurring every four years, significantly reduces the supply of Bitcoin entering the market.
History suggests that halvings have been followed by bull runs for Bitcoin.
Iran Attack and Geopolitical Tensions
Last weekend’s drone and missile attacks by Iran on Israeli targets impacted cryptocurrency prices, particularly Bitcoin, which briefly reached close to ,000 on Saturday.
Headwinds for Bitcoin Remain
Despite the recent surge, Bitcoin still faces some headwinds. “Geopolitical tensions were not the only factor affecting crypto markets last week,” noted analysts from Amina, a cryptocurrency bank. “We observed similar bearish sentiments in miners’ behavior, trading volumes, ETF flows, and U.S. inflation data.”
Amina analysts revealed that miners are selling off their Bitcoin ahead of the halving, as the reduction in rewards may render some operations unprofitable. This has led miners to bolster their financial reserves.
Additionally, negative net flows through spot Bitcoin exchange-traded funds (ETFs) since last week have contributed to the pressure on Bitcoin’s price.
A Banner Year for Bitcoin
Despite these challenges, Bitcoin has had a stellar year, with its price climbing by 50%. Notably, Bitcoin marked its all-time high of over ,000 in March.
The launch of Bitcoin ETFs in the U.S. earlier this year has played a pivotal role in Bitcoin’s gains.
