Bitcoin’s price soared past $65,000 in response to easing tensions between Israel and Iran, causing a turnaround in the crypto market. Last week, the industry suffered losses due to escalating conflict in the Middle East. However, after Iran downplayed the situation and Israel showed restraint, the market saw a 4% increase this morning.
Market analysts believe that the resilience of the market can be attributed to the measured responses from both countries, indicating a reluctance to engage in a full-scale conflict. This has alleviated concerns of a potential Gulf War resurgence.
Bitcoin briefly dropped below $60,000 during early Asian trading hours but quickly rebounded as Iran’s response was less severe than anticipated. At the time of press, Bitcoin was trading at around $64,450, marking a 5% increase.
Analysts like Tuur Demeester and Mortensen Bach highlighted the role of geopolitical tensions in driving demand for safe-haven assets like bitcoin, commodities, and gold. However, there is also speculation that Bitcoin’s rebound may be a result of the short-term resolution between Iran and Israel rather than a true safe-haven behavior.
Meanwhile, the upcoming halving event for Bitcoin, scheduled for April 20, is less than 100 blocks away. Analysts anticipate positive outcomes for long-term investors based on previous halving events, but there are concerns that the event could trigger a short-term sell-off in the market.
Overall, the market’s reaction to geopolitical events and the looming halving event for Bitcoin are keeping investors on edge as they navigate the volatile crypto landscape.
