Following the fourth halving event in the cryptocurrency’s history, Bitcoin (BTC) maintained stability at around $63,700, impacting the economic dynamics for the miners who sustain the Bitcoin network.
BTC remained relatively stagnant after the 840,000th Bitcoin block was mined as Saturday commenced in UTC time, barely deviating from its position just before the event. The cryptocurrency experienced a dip to $59,685 on Friday before recovering above $65,000.
Historically, halving events have often preceded bullish movements in Bitcoin’s price. The previous halving in May 2020 saw Bitcoin surge from $9,500 to $65,000 over the subsequent year.
However, this time around, Bitcoin had already embarked on a significant rally, climbing from $15,500 in late 2022 to $73,680. This rally was fueled by optimism surrounding the approval and trading of spot Bitcoin ETFs in the U.S. earlier in January.
JPMorgan anticipated a decline in Bitcoin’s price post-halving due to “overbought conditions” reflected in the high level of open interest in Bitcoin futures. Goldman Sachs suggested that for Bitcoin to replicate the success of previous halving cycles, favorable macroeconomic conditions supporting risk-taking are necessary.
Since February 28, Bitcoin has traded within the range of $59,600 to $73,860, with upward movement this week amid escalating tensions in Israel, impacting global capital markets.
A significant sell-off on April 12, ranging from $71,000 to $60,000, resulted in the elimination of $4 billion in open interest from the Bitcoin market, with the total figure across all exchanges excluding CME standing at $16.1 billion according to Coinalyze.