Bitcoin Flash Crashes 6.3% Amid Israel-Iran Conflict Ahead of Halving Countdown
The crypto market faced a turbulent night as tensions between Israel and Iran escalated, causing Bitcoin (BTC) to flash crash by 6.3% over three hours. The leading cryptocurrency fell from $63,540 to a low of $59,570 before recovering and currently trading at $64,430, up 0.9% on the 24-hour chart.
The looming halving event, scheduled to occur at 00:56 UTC on April 20, has added to the uncertainty in the market. The halving will reduce the block reward for Bitcoin miners from 6.25 BTC to 3.125 BTC, potentially cutting miners’ revenue in half.
Analysts at JPMorgan and Deutsche Bank have warned of potential price weakness post-halving as miners may need to sell their holdings to remain profitable. They anticipate a drop in hashrate and consolidation among miners, with some needing to relocate to regions with lower energy costs.
Despite the concerns, analysts from Deutsche Bank believe that the halving has already been priced into the market and expect Bitcoin’s price to remain high post-halving due to various factors, including the potential approval of a spot Ethereum ETF and regulatory changes.
Bernstein analysts offered a more optimistic outlook, predicting a bullish trajectory for Bitcoin after miners adjust to the lower emission rate and ETF inflows resume. They see BTC hitting $90,000 by the end of 2024 and potentially reaching $150,000 by 2025.
Overall, the crypto market is facing challenges and opportunities as it navigates through the pre-halving weakness and geopolitical tensions, with analysts offering differing views on Bitcoin’s future price movements.
