Bitcoin Rally Holds Around $63,700 Following 4th Block Reward Halving

Bitcoins value remained nearly unchanged from its previous level, which was just prior to the mining of the 840,000th block, around UTC Saturday morning. The cryptocurrency had experienced a decline as low as $59,685 on Friday, but subsequently bounced back above $65,000.

Read more: Complete coverage of the fourth Bitcoin halving

Historically, a decrease by half in Bitcoin’s price has been followed by a price increase. For instance, the halving that took place in May 2020 was preceded by a price rise from $9,500 to $65,000 within the next year.

This time around, Bitcoin has experienced a significant surge, increasing from $15,500 at the end of 2022 to an all-time high of $73,680. The optimism surrounding the approval of U.S. spot Bitcoin ETFs and their subsequent trading in January fueled this upward trend.

On Thursdays, JPMorgan announced its anticipation that bitcoin would decrease post-halving due to “overbought” status caused by elevated open interest in bitcoin futures. Goldman Sachs also stated that favorable macroeconomic conditions are essential for bitcoin to mimic past triumphs following halving occurrences and boost risk-taking.

Since February 28, Bitcoin’s price has fluctuated between $59,600 and $73,860. The higher end of this range has been defended this week, despite tensions escalating in Israel causing market instability and impacting other financial assets as well.

On April 12, there was a significant drop in bitcoin prices from $71,000 to $60,000, resulting in the elimination of approximately $4 billion worth of open contracts in the market, as reported by Coinalyze. The total value of open contracts across all exchanges, excluding CME, currently stands at around $16.1 billion.