Bitcoin price steadies after halving

Bitcoin price remained steady on Tuesday, trading close to the $67,000 level after the BTC halving event on the weekend. If the BTC price declines, support can be found at $60,000 again, while resistance may be encountered near $68,000. 

Ethereum price also remained steady on Tuesday, hovering around the $3,220 level. If Ethereum's price declines, it may encounter support near $2,800, while if it increases, resistance may be encountered near $3,300.

Bitcoin recently reached a new all-time high of $73,800. Bitcoin’s bullish run has renewed interest in crypto markets, boosting other cryptocurrencies as well. Bitcoin has encountered significant selling pressure, however, causing increased volatility in the past weeks as bulls wrestle with bears. 

Bitcoin underwent a ‘halving’ during the weekend, boosting its price. Every halving event cuts the rate at which new bitcoins are released into circulation in half, increasing the scarcity value of Bitcoin. This was the fourth halving event in the history of Bitcoin and markets have been anticipating the event for some time. The Bitcoin halving event, however, had already been priced in weeks ago, boosting the value of the cryptocurrency to an all-time high. As a result, the markets’ reaction to the event was somewhat muted. Bitcoin price continued to rise on Monday, however, propped up by renewed risk sentiment.

Crypto markets have been under pressure in the past week by the escalation of hostilities between Israel and Iran. Fears that the war will spread in the Middle East are promoting a risk aversion sentiment putting pressure on risk assets such as cryptocurrencies. Tensions in the Middle East have been high after the recent airstrike on Iran’s embassy in Syria. Iran accused Israel of the attack and launched a retaliative drone strike on Israeli ground. The US has pledged to support Israel in the conflict, raising concerns of a wider regional conflict. 

Israel launched an airstrike against Iran on Friday as retaliation for the drone strikes. Israel’s retaliatory attack came after weeks of soaring tensions in the region. Irani officials have reportedly stated that Iran does not intend to retaliate anew against Israel. The crisis between Israel and Iran seems to have been diffused for the time being. Renewed risk sentiment propped up crypto markets this week.

Cryptocurrency prices are also affected by central banks’ interest rates. High-interest rates are putting pressure on risk assets, while the promise of rate cuts boosts crypto markets. The US Federal Reserve kept interest rates unchanged at its latest policy meeting in March, within a target range of 5.25% to 5.50%. Odds of rate cuts are becoming more moderate, boosting crypto markets, as policymakers have stated that they intend to start reducing interest rates slowly.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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