Bitcoin and Ethereum Values Rebound Ahead of Potential Final Market Adjustment Before BTC Halving

• The values of Bitcoin (BTC) and Ethereum (ETH) experienced a significant correction over the weekend, potentially marking the final market adjustment prior to the BTC halving.

The cryptocurrency market has dismissed worries regarding escalating tensions between Iran and Israel, as the U.S. seems to have persuaded Israel against a counter-attack; however, the repercussions for Bitcoin remain severe.

Bitcoin fell below $62,000 during the weekend as geopolitical unrest unsettled the markets. Currently, BTC is trading above $66,000, while ETH has risen back above $3200.

A busy week is anticipated for both the cryptocurrency and traditional finance markets, with retail sales figures and Federal Reserve speeches scheduled for the upcoming days.

The cryptocurrency market underwent a substantial correction over the weekend, beginning with a negative Friday and culminating in a Saturday downturn.

Bitcoin experienced one of its most challenging weekends in recent memory. Nevertheless, it has regained some value and is now trading slightly above $66,000.

While the causes of the decline remain a topic of discussion, it is evident that the total cryptocurrency market capitalization dropped by over $400 billion at one point. Many altcoins suffered even greater losses but have started to recover as markets reopen.

See Also: Why Bitcoin Price Dropped Below $67,000, According To Blockchain Firm

Crypto Markets Recover From The Bloodbath

With the next Bitcoin halving approaching, the question arises whether this was the final correction in the crypto market before the block reward is halved again.

Much has been discussed regarding the events of the past 72 hours as the weekend concluded.

BTC remained relatively stable on Friday morning, fluctuating within a narrow range of $70,000 to $71,000.

Shortly thereafter, recent statements from several Federal Reserve branch Presidents indicated that the central bank does not plan to lower interest rates in the near future.

Up until that moment, the outlook seemed positive.

However, BTC, along with most markets, reacted swiftly to the news. The leading cryptocurrency dropped approximately $6,000 to $65,000.

BTC managed to recover some value on Saturday, trading above $67,000. However, tensions between Iran and Israel escalated rapidly, with Iran launching drone missiles at Israel.

This single geopolitical event caused BTC to reach lows not seen in the past month, trading at $61,000.

The coin experienced further volatility on Sunday, resulting in hundreds of millions of dollars in liquidations. Some traders expressed their frustrations on X, with some reaching a state of despair.

The beginning of this business week has shown more positive signs, aided by encouraging ETF news from Hong Kong. As of this writing, Bitcoin is trading at $66,332, reflecting a 2.6% increase since yesterday. However, this still represents a 7.9% decline compared to its value from a week ago.

Bitcoin Fear and Greed Index is 74 – Greed
Current price: $65,739 pic.twitter.com/q7E1FHuerc

— Bitcoin Fear and Greed Index (@BitcoinFear) April 15, 2024

The second-largest cryptocurrency, Ethereum, is trading at $3,247 today, marking a 5.9% increase from yesterday. However, ETH’s current value is down 9.9% from a week ago.

Bitcoin Halving Is The Talk Of The Crypto Town

Historically, this is not the first time BTC has reacted in such a manner amid rising geopolitical tensions between two nations.

Historical records indicate that BTC and the cryptocurrency market experienced a sharp decline over two years ago when Russia invaded Ukraine. According to Willy Woo, the cryptocurrency recovered nearly all its losses “within days.”

#BTC down 10% immediately at the outbreak of the Iran – Israel war.

Pulling up this old chart I did at the outbreak of the Russia-Ukraine war, also down 10%. Recovery happens within days. pic.twitter.com/PmusLrbtRZ

— Willy Woo (@woonomic) April 14, 2024

Alex Kruger maintains that Bitcoin’s forthcoming price movements are closely linked to the actions of Israel and Iran.

Iran attacked Israel. Wild volatility again. This is not about charts or fundamentals. This is about war, headlines, and managing risk wisely. If war escalates, we are going much lower. If there is no follow-up from Israel, we recover the entire drop. Hard to imagine… pic.twitter.com/BqYtVCORrG

— Alex Krüger (@krugermacro) April 13, 2024

BTC could rebound quickly if the conflict is resolved, but he cautioned that “we are going much lower” if a full-scale war ensues. Some are speculating about the possibility of WWIII.

The market was not unfavorable for everyone. This market correction provided an opportunity for some astute investors to bolster their BTC holdings. Lookonchain data indicates that whales have been particularly active, with one whale withdrawing nearly $40 million worth of BTC.

This whale withdrew 598 $BTC($37.78M) from #Binance again after the market dropped.

Since the $BTC price fell from its peak on Mar 14, this whale has withdrawn 10,158 $BTC($680.83M) from #Binance at an average price of $67,026.

Address: 1L7gnfBJhK9ZwUcw2Lx93BPHmcd1tsxeTs pic.twitter.com/rgspysCSWc

— Lookonchain (@lookonchain) April 14, 2024

Bitcoin halving occurs every 210,000 blocks, approximately every four years, reducing the block reward by 50%.

The next halving, expected to occur on April 19, although BTC halving schedules may vary, will see the rewards decrease to 3.125 BTC per block.

When the production rate of a specific asset declines, its price is likely to rise if demand remains constant or increases.

This may explain why Bitcoin has consistently risen after each previous halving and why the community anticipates future bull runs as well.

Crypto markets have faced significant challenges over the past week but have begun to exhibit signs of recovery during the Monday morning trading session in Asia.

Markets will also be attentive to earnings, with this week’s reports spanning various economic sectors, including banking and finance.

Key Events This Week:

1. March Retail Sales data – Monday

2. Fed Chair Powell Speaks – Tuesday

3. Existing Home Sales data – Thursday

4. Philly Fed Manufacturing Index – Thursday

5. ~10% of S&P 500 companies report earnings

6. Total of 13 Fed speaker events this week

All…

— The Kobeissi Letter (@KobeissiLetter) April 14, 2024

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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