Bitcoin plummeted to a seven-week low of $59,630 on the eve of the Bitcoin halving, following renewed tensions between Iran and Israel. The market reacted violently to the geopolitical news, with many short positions liquidated and an impressive BTC rebound, surpassing $65,000. Despite the rebound and volatility, analysts at JPMorgan believe that the imminent Bitcoin halving is already priced into the market.
Bitcoin experienced sudden volatility as Middle East geopolitical turmoil affected financial markets. The price of Bitcoin reached a new seven-week low of $59,630 after the daily close on April 18, before strongly rebounding, even surpassing $65,000.
Market reaction to geopolitical news
This drop coincided with renewed tensions between Iran and Israel, a particularly sensitive issue for Bitcoin this month, which led to a sharp drop from $70,000. Although a modest recovery was underway the day before, it was quickly canceled as markets reacted to the latest developments.
Impressive BTC rebound before the Bitcoin halving
Amid rumors that the situation might not worsen further, BTC experienced an equally impressive rebound, reaching local highs of $65,300.
The latest data from the on-chain monitoring tool CoinGlass reveals numerous liquidations for short traders.
Sell-side liquidity between $64,000 and $65,000 was taken instantly, with no significant blocks left near the spot price beyond a new offer wall at $61,200.
With so much attention focused on short-term price movements, the imminent Bitcoin halving has surprisingly received little consideration. Earlier in the week, analysts at JPMorgan believed that the event was already priced in by market participants. The banking giant also predicts a drop in BTC price in the weeks following the Bitcoin halving.
