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Bitcoin Price Retreats as Halving Approaches
The price of Bitcoin has recently retreated, dropping to just below $63,000 as momentum stalled leading up to its anticipated block reward halving. With the halving only three days away, Bitcoin slipped to a low of $61,867, wiping out its gains over the past month. Currently, the cryptocurrency is trading at around $62,500, reflecting a 5.6% decrease on the day and an 11.2% decrease over the week, as per data from CoinGecko.
Market Volatility and Liquidations
The broader crypto market also experienced a downturn alongside Bitcoin, with the combined market cap of all cryptocurrencies plummeting by 6.4% to $2.4 trillion overnight. Among the top 20 cryptocurrencies by market cap, excluding stablecoins, Solana (SOL), Toncoin (TON), and Bitcoin Cash (BCH) witnessed double-digit declines in a single day.
The market turmoil led to over $327 million in liquidations across the entire crypto market in the last 24 hours, with longs accounting for over $260 million of this total, according to data from CoinGlass. Bitcoin alone contributed more than $83 million to the long liquidations during this period.
Geopolitical Factors Impacting Markets
While the prevalent narrative previously attributed Bitcoin’s increased volatility to the impending halving, recent market anxiety appears to be intertwined with broader geopolitical tensions. Developments in the Middle East, such as Israeli airstrikes in Gaza and a direct military strike by Iran on Israel, have contributed to heightened market uncertainty.
In response to these concerns, the spot price of gold surged to highs exceeding $2,400 on Monday as investors sought refuge in traditional safe-haven assets following Iran’s actions against Israel over the weekend. With Israel’s military leadership issuing warnings and global leaders advocating for restraint to prevent further escalation, the geopolitical landscape continues to influence financial markets.
Additionally, the U.S. dollar index reached a year-to-date high, signaling a robust dollar and exacerbating the slowdown in the cryptocurrency market. The index, which tracks the dollar’s performance against major foreign currencies including the Euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona, reflects ongoing dynamics impacting global markets.
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