Bitcoin Price Briefly Dropped Below $60,000 Before Rebounding

(CTN News) – A rebound from a drop below $60,000 on Friday led Bitcoin to rise above $64,000, as the cryptocurrency continued to undergo volatility in the lead-up to the upcoming halving, as it continues to witness volatility.

Bitcoin was trading around $63,800.00 on Monday, according to Coin Metrics, which indicated it hovered on the flat line.

In Thursday’s late hours, Bitcoin fell below the $60,000 threshold.

As the market prepares for the upcoming halving, which is slated to take place this week, there have been recent fluctuations in the market. As a result, bitcoin miners’ rewards are slashed in half according to this rule. There is a halving process on the blockchain every four years and it is written into the blockchain code. The result is a slowing supply.

Prior to the bitcoin price halving, the cryptocurrency experienced bull runs.

Last weekend, Iran launched an unprecedented drone and missile attack on Israel, affecting cryptocurrency prices. Bitcoin hovered around $70,000 on Saturday.

Bitcoin faces other headwinds at present.

It is pertinent to note that crypto markets were not solely impacted by geopolitical tensions. According to analysts at cryptocurrency bank Amina, “we can see similar bearish sentiments across miners’ behavior, trading volumes, and ETF flows, as well as news on US inflation data.”

Analysts at Amina have reported that miners are selling in advance of the halving. Halving rewards may result in some operations becoming unprofitable due to reward reduction. In order to strengthen their balance sheets, miners are looking for ways to increase production.

Miner balances are dropping significantly at the moment. Amina explained that this is due to heavy selling by miners as they scramble to take profits before the price halving takes place.

The net flows through spot exchange-traded funds have been negative since last week, according to Amina analysts – further pressuring the cryptocurrency.

As price has increased by over 50% this year, it has been another strong year for the cryptocurrency. March marked highest point, exceeding $73,000.

The bitcoin exchange-traded funds, which were approved in the United States earlier this year, contributed significantly to last year’s gains.

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