- The prices of Bitcoin (BTC) and Ethereum (ETH) saw a massive correction over the weekend, in what could be the last market correction before BTC halving.
The crypto market has shaken off concerns of escalations between Iran and Israel as the U.S. appears to have talked Israel out of a counter-attack, but the effects on Bitcoin remain dire.
Bitcoin dropped below $62,000 over the weekend as geopolitical tension shook the markets. BTC is trading above $66,000, while ETH is back above $3200.
Another busy week lies ahead for the crypto and TradFi markets on the US economic calendar with retail sales data and Fed speeches set ahead.
The crypto market saw a massive correction over the weekend, starting with a red Friday and followed by a Saturday massacre.
Bitcoin had one of its worst weekends in a long time. However, it has managed to recover some ground and now trades slightly above $66,000.
While the reasons for the crash are still debatable, the fact is that the total crypto market cap shed over $400 billion at one point. Most altcoins fell even harder but have begun their recovery as markets open up.
See Also: Why Bitcoin Price Dropped Below $67,000, According To Blockchain Firm
Crypto Markets Recover From The Bloodbath
With the next Bitcoin halving just around the corner, the question arises whether this was the last crypto market correction before the block production is reduced by another 50%.
So much can and has been said about what took place in the past 72 hours as the weekend rolled away.
BTC was relatively calm on Friday morning, in a tight range between $70,000 and $71,000.
Soon after came the latest Fed statements from a few branch Presidents claiming that the central bank has no intentions to reduce the interest rates anytime soon.
All was thought to be good up to that point.
However, BTC, as well as most markets, reacted to the news immediately. The leading crypto coin fell by about $6K to $65K.
Soon after BTC recovered some ground on Saturday to trade above $67K. However, the tension between Iran and Israel escalated fast with Iran launching drone missiles to Israel.
That single geopolitical instance drove BTC to lows not seen in the last month with the coin trading at $61K.
The coin faced more volatility on Sunday, leaving hundreds of millions of dollars in liquidations. Some traders took their disappointments on X, some on the verge of suicide.
The start of this business week has been more positive amid promising ETF news coming from Hong Kong. At the time of writing, Bitcoin trades at $66,332, a 2.6% increase since yesterday. However, that leaves BTC 7.9% lower compared to its value 7 days ago.
Bitcoin Fear and Greed Index is 74 – Greed
Current price: $65,739 pic.twitter.com/q7E1FHuerc— Bitcoin Fear and Greed Index (@BitcoinFear) April 15, 2024
The second largest crypto coin, Ethereum, trades at $3,247 today, which is a 5.9% increase from yesterday. However, the value of ETH today is 9.9% down from a week ago.
Bitcoin Halving Is The Talk Of The Crypto Town
History has it that this is not BTC’s first such reaction amid escalating geopolitical tension between 2 countries.
Memory archives show BTC and the crypto market fell hard over two years ago when Russia invaded Ukraine. According to Willy Woo, the crypto recovered almost all losses “within days.”
#BTC down 10% immediately at the outbreak of the Iran – Israel war.
Pulling up this old chart I did at the outbreak of the Russia-Ukraine war, also down 10%. Recovery happens within days. pic.twitter.com/PmusLrbtRZ
— Willy Woo (@woonomic) April 14, 2024
Alex Kruger stands ground that Bitcoin’s upcoming price movements are strongly tied to what Israel and Iran will do next.
Iran attacked Israel. Wild volatility again . This is not about neither charts nor fundamentals. This is about war, headlines, and managing risk smartly. If war escalates, we are going much lower. If there is no follow-up from Israel, we recover the entire dump. Hard to imagine… pic.twitter.com/BqYtVCORrG
— Alex Krüger (@krugermacro) April 13, 2024
BTC could recover swiftly if the conflict is resolved, but he warned that “we are going much lower” if an all-out war breaks out. Some are based on the rumors of WW111.
The market was not bad news to everyone. This market correction helped some savvy investors to strengthen their BTC stash. Lookonchain data shows that whales have been particularly active. One Whale withdrew nearly $40 million worth of BTC.
This whale withdrew 598 $BTC($37.78M) from #Binance again after the market dropped.
Since the $BTC price dropped from its peak on Mar 14, this whale has withdrawn 10,158 $BTC($680.83M) from #Binance at an average price of $67,026.
Address: 1L7gnfBJhK9ZwUcw2Lx93BPHmcd1tsxeTs pic.twitter.com/rgspysCSWc
— Lookonchain (@lookonchain) April 14, 2024
Bitcoin halving takes place at every 210,000 blocks, which is approximately 4 years and reduces the block production by 50%.
The next one, which should be completed on April 19, though BTC halving calendars vary, will see the rewards decline to 3.125 BTC per block.
Once the production rate of a certain asset declines, its price should go up if the demand for it remains the same or increases.
Perhaps this is why Bitcoin has headed north after each of the previous halvings and why the community anticipates upcoming bull runs as well.
Crypto markets have been battered over the past week but started to show signs of recovery during the Monday morning trading session in Asia.
Markets will also focus on earnings, with this week’s releases spread between various economic sectors including banking and finance.
Key Events This Week:
1. March Retail Sales data – Monday
2. Fed Chair Powell Speaks – Tuesday
3. Existing Home Sales data – Thursday
4. Philly Fed Manufacturing Index – Thursday
5. ~10% of S&P 500 companies report earnings
6. Total of 13 Fed speaker events this week
All…
— The Kobeissi Letter (@KobeissiLetter) April 14, 2024
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