Apr 19 2024: Bitcoin saw a slight increase in price on Friday, rebounding from an earlier dip below crucial support levels as investor sentiment wavered due to reports of an Israeli strike against Iran. The looming halving event also remained a focal point for market watchers.
Over the past 24 hours, Bitcoin rose by 0.9% to reach $62,550.7 by 00:42 ET (04:42 GMT). However, it had temporarily dropped to as low as $59,693 following news of the Israeli strike earlier on Friday.
Bitcoin’s dip below the $60,000 mark, a significant support level, reflected the fragility of risk appetite, especially within the cryptocurrency markets. This sentiment was evident as traders shifted towards safe-haven assets like the Japanese yen, U.S. dollar, and gold in response to the Israeli strikes.
Reports linked the explosions in Iran to drone attacks by Israel, raising concerns about a potential escalation in regional conflict. Despite this, Bitcoin managed to recover as the $60,000 support level held steady, at least for the time being.
Attention has now turned to the upcoming halving event, expected at block no. 840,000 on the Bitcoin blockchain over the weekend. This event will halve the mining reward for Bitcoin, reducing the rate of new coin generation. While some anticipate that this supply reduction will drive up Bitcoin’s price, historical data suggests that immediate post-halving gains may be limited.
JPMorgan analysts noted that Bitcoin remains in overbought territory after a robust performance this year and cautioned that further price declines could occur after the halving.
In the broader cryptocurrency market, altcoins showed fragility amid weak risk appetite and concerns raised by Federal Reserve officials about prolonged high-interest rates. Ethereum fell by 0.6%, XRP dropped by 1.6%, while Solana bucked the trend with a 4.4% increase.
Despite initial dips, major altcoins recovered from intraday lows, indicating some resilience amidst the volatile market conditions influenced by geopolitical tensions and macroeconomic factors.
