The latest news indicates that tensions in the Middle East are likely to escalate, and the price of Bitcoin is frustratingly stagnant at $62,800. Investors, still mindful of the Russia-Ukraine conflicts from February 2022, are cautious. The tension is expected to increase within the next 48 hours. For now, there is a general decline in cryptocurrencies, except for DOGE.
Will Cryptocurrencies Rise Again?
IBIT has climbed back to a trading volume of $1.5 billion today, and considering the price drop, a strong net exit is likely. In the ETF channel, investors found new trading opportunities after the weekend’s decline. The losses seen after the US stock markets opened were primarily due to sales by investors on the Binance exchange.
BTC dropped to $62,274 before targeting $63,000 again. Upcoming news and ETF inflow/outflow data could further increase volatility in the coming hours.
Hong Kong and BTC Halving
Despite all the pessimism, there’s also a silver lining. With the acceptance of the world’s largest cryptocurrency in Hong Kong, BTC climbed to the $67,000 mark today. We had already discussed the current situation at the beginning. Given the magnitude of the event, this approval should at least support a potential recovery in the medium term towards a new ATH.
Reserve Risk metric is in the green zone, indicating that investors see BTC as an attractive asset in terms of risk/reward. This metric turns green and signals an uptrend during periods when long-term investors’ appetite for risk increases. Of course, this signal alone is not sufficient.
The leading cryptocurrency is very likely to undergo its block reward halving on Saturday. This event could positively differentiate BTC during the process. While some experts already say the halving is priced in, the reduction of new supply by half should yield results beyond a typical sell-the-news event. Historical data suggest this could be the last turn for an over 100% increase.
Moreover, a resurgence of consolidation and the permanent loss of the $63,700 support could open the door for a deeper correction to levels of $61,800 and $54,000 in the short term. And of course, no one can see the future, and crypto is full of surprises.
