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Bitcoin It rose above $64,000 on Friday, rebounding from a drop below $60,000, as the cryptocurrency continues to face volatility ahead of the upcoming halving event.
Bitcoin's price rose 2% to $64,640.00 at approximately 9:17 a.m. ET, according to CoinDesk data.
Other cryptocurrencies also jumped. ether It rose by more than 3% while Solana It rose about 10%.
Bitcoin fell below the $60,000 threshold late Thursday.
The volatile trade comes ahead of the upcoming Bitcoin halving, which is scheduled to take place this week. This is when the rewards for Bitcoin miners are cut in half. The halving occurs every four years and is written into Bitcoin's blockchain code. The result is a slowdown in the supply of Bitcoin in the market.
In previous Bitcoin cycles, the halving has somewhat preceded a bullish rally for the cryptocurrency.
Cryptocurrency prices were affected by the unprecedented Iranian drone and missile attack on Israel last weekend. On Saturday, Bitcoin was hovering around the $70,000 level.
But there are other headwinds for Bitcoin right now.
“Geopolitical tensions have not been the only factor impacting cryptocurrency markets since last week,” said analysts at Amina Cryptocurrency Bank. “We can see similar bearish sentiments across miner behaviour, trading volumes, ETF flows and news from US inflation data.” “. Research note Friday.
Miners are selling their bitcoin ahead of the halving, Amina analysts said. As the halving reduces their rewards, there may be some operations that become unprofitable. So miners are looking to shore up their balance sheets.
“Currently, miners’ balances are near all-time lows,” Amina said in the note. “This comes on the back of heavy selling from miners as they scramble to lock in profits before the halving.”
Net flows through bitcoin exchange-traded funds have been negative since last week, according to Amina analysts — adding pressure on bitcoin.
It's been another strong year for Bitcoin, whose price has risen by 50%. Bitcoin reached an all-time high above $73,000 in March.
Bitcoin exchange-traded funds, which were approved in the US earlier this year, have made a lot of gains in the past year and into 2024.
