Bitcoin (BTC) is facing a challenging start to the week as it tries to recover from a 15% price dip. The recent weekend saw a significant decline in the cryptocurrency market, but Bitcoin is already showing signs of bouncing back. Geopolitical tensions in the Middle East are expected to play a crucial role in the market this week, with some comparing it to the cross-market crash caused by COVID-19 in March 2020. Altcoins have been more affected by the market reaction to the hostilities between Israel and Iran, while BTC/USD has managed to maintain support at $60,000. However, leverage has taken a hit, with 30% of open interest disappearing instantly. The next block subsidy halving for Bitcoin is approaching, which is expected to contribute to the volatility of the market. Despite the flash crash, Bitcoin bulls are starting to regain momentum and are currently trading at around $61,000. Altcoins have also started to recover, although some have experienced a 50% loss in value. Analysts suggest that the recent correction was necessary to eliminate over-leveraged positions in the market. Liquidity on the largest exchange, Binance, remains healthy, and Bitcoin is still holding above its previous cycle highs. The upcoming week will see the release of key United States macroeconomic data and statements from senior Federal Reserve officials, including Chair Jerome Powell. The market is already on edge due to geopolitical tensions in the Middle East, which may further impact risk assets. Traders are closely monitoring inflation rates and the likelihood of interest rate cuts. The odds of a 25-basis-point rate cut at the Fed’s July meeting are currently at 43%, and at 45% for September. The recent market volatility has overshadowed the upcoming block subsidy halving for Bitcoin. Miners are preparing for the event, which will reduce the number of new bitcoins per mined block by 50%. Research suggests that miners are increasing selling pressure in anticipation of the halving. However, data shows that the BTC balance in known miner wallets has remained mostly flat since the end of March. Bitcoin and Ether ETFs have been approved for trading in Hong Kong, which is expected to facilitate Chinese participation in the cryptocurrency market. Despite the recent market downturn, sentiment remains “greedy,” according to the Crypto Fear & Greed Index. The index is currently at 74/100, indicating extreme greed. Market observers are divided on the future price of BTC/USD, with some predicting a return to $70,000 by the time of the halving. This article does not provide investment advice and readers should conduct their own research before making any decisions.
Bitcoin this week: 5 essential details to grasp, including the potential $70,000 BTC price due to the halving