NAIROBI (Coinchapter.com) – Although Bitcoin’s price declined sharply over the weekend, dropping below $62,000 as geopolitical tensions escalated globally, there is much confidence that Bitcoin will rise back to $70,000 in the near future. Despite these challenges, the cryptocurrency quickly rebounded to above $64,000 by Sunday morning, showcasing its resilience.
As of April 15, 2024 Bitcoin is trading at $65,982.88, marking a 2.52% increase over the day. This recovery underscores Bitcoin’s emerging status as a potential safe haven amid global uncertainties.
Market Reactions to Global Events
Geopolitical developments that affected global markets triggered Bitcoin’s volatility. Over the weekend, Bitcoin’s price dipped as tensions escalated between Israel and Iran. According to Al-Jazeera, the situation de-escalated after the U.S. opted out of a potential counter-attack, calming the markets. This news coincided with Bitcoin rebounding to above $64,000 by Sunday morning.
Before the tensions kicked off, the digital asset market had already been under selling pressure due to the U.S. tax season, which often occurs in the run-up to the Bitcoin halving. The halving, a programmed event that reduces the reward for mining new Bitcoin, is 99.6% complete, with only 707 blocks – or about 4 days and 20 hours – remaining.
Additionally, the Federal Reserve has signaled that there is ‘absolutely no urgency’ to cut interest rates, according to San Francisco Federal Reserve President Mary Daly. Her remarks underscore a broader commitment to maintaining rate stability while ensuring that inflation converges towards the Fed’s 2% target.
This stance on interest rates suggests that traditional investment vehicles might not see an increase in yields soon, making higher-risk assets such as Bitcoin more appealing. Investors looking for better returns might increasingly turn to cryptocurrencies, potentially boosting Bitcoin’s price and market activity.
Laura Shin, a respected cryptocurrency analyst, noted that the recent Bitcoin dip is a common occurrence around tax time.
“If you’re asking about the current decline, this happens every year (or at least frequently) right around tax time. It’s just people selling a bit to pay for taxes,”
Laura Shin said on XStrategic Movements in the Crypto Space
In fact, in response to the dip, cryptocurrency exchanges saw significant movements. Lookonchain reported that investors transferred approximately 297.9 million USDT from Tether Treasury into Kraken and Bitfinex, actively buying the dip in anticipation of a market rebound.
297.9 million USDT inflows from Tether Treasury. Source: Lookonchainmoreover, this strategic influx of funds highlights the active management within the crypto space, aiming to capitalize on market lows. This recurring pattern is observed around significant market events, where liquidity shifts reflect investor sentiment and strategic positioning.
Confidence That Bitcoin Will Rise Soon
Notably, despite the initial drop, Bitcoin’s quick recovery over the weekend underscores its potential stability as a digital asset amid fluctuating global circumstances and demonstrates confidence that Bitcoin will rise closer to $70,000 again soon. The market’s response to geopolitical events, combined with strategic fund movements, illustrates the dynamic and responsive nature of cryptocurrency investments.
Certainly, as Bitcoin approaches its next halving, the market remains watchful of further developments that could influence its trajectory.
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