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Bitcoin rebounded from a drop below $60,000 to rise above $64,000 on Friday as volatility in the cryptocurrency continues ahead of the upcoming halving event.
Bitcoin price was $64,739.04 at around 6:15 a.m. ET, up more than 5% from 24 hours ago, according to CoinDesk data.
Other cryptocurrencies also rose. Ether rose more than 3% and Solana rose about 10%.
Bitcoin fell below the $60,000 mark late Thursday.
The volatile trade comes ahead of the halving scheduled for this week. This is when Bitcoin miners' rewards are cut in half. Halving occurs every 4 years and is written in the Bitcoin code. As a result, the supply of Bitcoin to the market will slow down.
In previous Bitcoin cycles, halvings preceded bull markets in the cryptocurrency.
Cryptocurrency prices were affected by Iran's unprecedented drone and missile attack on Israel over the weekend. On Saturday, Bitcoin was hovering around $70,000.
However, there are other headwinds for Bitcoin at the moment.
“Geopolitical tensions have not been the only factor impacting the crypto market since last week. Across news coming from miner activity, trading volumes, ETF flows, and US inflation data, we see similar weakness.” sentiment,” said an analyst at crypto bank Amina. Friday research notes.
Analysts at Amina said miners are selling Bitcoin ahead of the halving. If the amount is cut in half, remuneration will decrease, and some businesses may become unprofitable. As a result, miners are looking to shore up their balance sheets.
“Miner balances are currently near record lows, driven by heavy selling by miners looking to lock in profits ahead of the halving,” Amina said in a note.
Net flows through Spot Bitcoin Exchange Traded Funds have been negative since last week, putting further pressure on Bitcoin, according to analysts at Amina.
This year has been another strong year for Bitcoin, with the price increasing by 50%. Bitcoin hit an all-time high of over $73,000 in March.
Bitcoin exchange-traded funds (ETFs), which were approved in the U.S. earlier this year, drove much of the rally from last year to 2024.
