Bitcoin (BTC), the largest cryptocurrency by market capitalization, has started to climb after experiencing relatively stable prices despite widespread anticipation among Bitcoin enthusiasts regarding the potential price surge following the halving event.
Ahead of the halving, the digital currency saw a low of $59,000 before experiencing a significant jump to $63,000 to close Friday's trading. The world's first decentralized cryptocurrency then traded at around $63,000 and $64,000 during the halving, wherein BTC prices are split in half – taking place only once every four years.
By Sunday, Bitcoin was trading at over $64,700 and even saw a high of over $65,600. The rise in BTC's price just a day after its halving event marked a different trend from the previous halving on May 11, 2020. At the time, the digital coin also didn't move much during the event, sticking at around $8,600 to a little over $9,000. A day after the event, Bitcoin didn't even reach $9,000.
Bitcoin's halving is highly anticipated in the crypto community, as enthusiasts and users of digital assets closely monitor how the event that makes new BTC in the market scarcer affects the coin's price.
Historically, BTC prices were pushed up weeks after halving. Previous cycles had many financial experts predicting ahead of the event that the digital currency's price would be driven up by low supply and high demand. However, division among analysts and observers has been more apparent in this particular cycle due to the current macro trends and overall market environment that Bitcoin's 2024 halving has encountered.
EToro analyst Simon Peters pointed out that "this is the first time that Bitcoin beat the previous historical record before the halving has even taken place." The cryptocurrency hit a new all-time high of $73,797 last month amid a three-month bull run following the approval of spot BTC exchange-traded funds (ETFs).
Investment banking giants JPMorgan and Goldman Sachs also warned ahead of the halving that investors should note the 2024 halving will likely not repeat history due to the "prevailing" macro conditions in financial markets.
Geopolitical risks were among the current market trends that analysts warned about ahead of the halving. Tensions between Iran and Israel apparently affected Bitcoin's price after Tehran attacked Israel directly on Apr. 13 as the coin saw a sharp drop to $62,000 from sticking to around $70,000 throughout the week.
The halving has just passed, and there will be a lot of time to speculate about whether BTC will repeat historical trends. But so far, it appears the popular cryptocurrency may be on the uptrend.
