Today, Bitcoin surpassed $65,000 as the market reacted to the positive change in the situation between Israel and Iran.
Bitcoin Price Exceeds 65,000 USD
Over the past week, the cryptocurrency industry has slumped due to escalating tensions in the Middle East. BTC dropped sharply in the first hours when news of Israel's retaliation against Iran was announced. However, this morning saw a reversal as the entire cryptocurrency market increased by more than 4%.
During the early trading hours of the Asian markets, Bitcoin temporarily fell below the $60,000 level. BTC then quickly recovered as Iranian officials downplayed the severity of the attack.
Market analysts attributed the market's steadfastness to Israel's measured response and Iran's efforts to cool tensions. Neither country wants to engage in a full-blown conflict. This eased concerns about a recurrence of the Gulf War.
Market analyst Mortensen Bach added:
“We are in a strong liquidity cycle, which will send risk assets significantly higher. There is no reason why BTC is already at the top of this cycle and the overnight Israel/Iran events still do not mark the end of this cycle.”
There is also an argument that Bitcoin is only recovering due to the possibility of a short-term conflict ending. Bitcoin may just be a risky asset here instead of a safe haven.
Bitcoin's Halving Event Is Approaching
These developments are taking place right as Bitcoin's halving event occurs. The halving event, reduces the reward for miners approximately every four to four times. This time the Halving was scheduled for April 20.
Analysts at NYDIG wrote:
“Bitcoin has shown strong momentum ahead of previous halvings, it has demonstrated even greater growth in the following 360 days. Subsequent halvings have resulted in overall increases of 2,819%, 803%, and 707%. This shows promising results for long-term investors in this cycle.”
Some have argued that the halving event could be a short-term “news selling event.”
