Key Points
- Bitcoin (BTC) saw a 1.74% increase amid international tensions, closing at $66,013.
- Investors are shifting their focus to the upcoming Bitcoin halving event in 2024.
Despite global unrest, Bitcoin (BTC) experienced a slight increase of 1.74% on Sunday, ending at $66,013. The warning from Iran to Israel about an impending attack lessened investors’ initial worries about immediate retaliation, allowing them to focus on the upcoming Bitcoin halving event.
Investors are now turning their attention to the Bitcoin halving event scheduled for 2024, with the BTC spot ETF flow data and updates from the Middle East also being closely watched.
Geopolitical Impact on Bitcoin
The small rise in Bitcoin’s price on Sunday partially reversed a 3.78% drop from Saturday, ending a three-day losing streak. News that Iran had informed Israel of an impending attack ahead of time was welcomed by investors, sparking hope that the situation in the region would not deteriorate further.
However, Bitcoin was unable to fully recover its Saturday losses. Concerns about the upcoming Bitcoin Halving event were heightened due to the potential for escalating tensions in the Middle East.
Countdown to Bitcoin Halving 2024
With the Bitcoin halving event set for April 19, 2024, investors are closely monitoring the balance of supply and demand. This event, which occurs every four years, halves the reward for mining new blocks. As the halving event approaches, the Bitcoin Fear and Greed Index is moving closer to the Extreme Greed zone, indicating that prices may potentially drop from their current levels.
As of now, the Bitcoin halving event in 2024 is expected to occur on April 20.
Market Trends and BTC Spot ETF Flow Data
Despite the easing of global tensions, the net inflows into BTC spot ETFs on Monday are crucial for understanding the demand picture post-halving. New data reveals that $82.8 million exited the Bitcoin market in the week ending April 12, which could impact short-term demand for Bitcoin.
It has been reported that Hong Kong is making significant strides towards accepting cryptocurrencies as mainstream investment alternatives. The Hong Kong Securities and Futures Commission (SFC) has given the green light to the first spot Bitcoin and Ethereum exchange-traded funds.
Bosera Asset Management and China Asset Management, two prominent financial institutions, have stated that the ETFs can now be launched following regulatory approval. This marks a significant milestone for crypto investments in the region.
Bitcoin Fear and Greed Index Indications
On Monday, the Bitcoin Fear and Greed Index rose from 72 to 74, entering the Extreme Greed zone. This could signal a drop, but the BTC spot ETF market flow data will be crucial for determining short-term trends. Changes in the index reflect investor sentiment and can influence their decisions to buy or sell.
MicroStrategy’s founder and chairman, Michael Saylor, shared a success chart on Sunday with the caption “Capitalize on Bitcoin”, encouraging others to seize the opportunities presented by Bitcoin.
At the time of writing, Bitcoin is trading at $66,392 against the US dollar, with a market capitalization of $1.307 billion. This recent 2.5% gain has been driven by positive news from Hong Kong, which saw the introduction of Asia’s first Bitcoin ETF.
