Bitcoin (BTC) maintained its price around $63,700 after experiencing its fourth halving event, which has significant implications for the miners powering the Bitcoin ecosystem. Despite the recent halving, BTC remained relatively stable, only fluctuating slightly before and after the 840,000th Bitcoin block was mined. The cryptocurrency had briefly dropped to $59,685 before bouncing back above $65,000.
Historically, halving events have often signaled a rally in the price of bitcoin, with the previous halving in May 2020 leading to a substantial increase from $9,500 to $65,000 over the following year. However, this time, bitcoin had already been on a significant upward trajectory, climbing from $15,500 in late 2022 to $73,680. Various factors, such as the optimism surrounding the approval and trading of spot bitcoin ETFs in the U.S., have fueled this rally.
Despite the positive outlook, some analysts, like JPMorgan, have warned that bitcoin could face a drop after the halving due to “overbought conditions” and high levels of open interest in bitcoin futures. Goldman Sachs also emphasized the importance of supportive macro conditions for bitcoin to continue its success following halving events. Bitcoin has been trading within a range of $59,600 to $73,860 since February 28, with recent market fluctuations attributed to global events, such as rising conflict in Israel impacting capital markets.