Bitcoin, the world's largest cryptocurrency, traded above $65,000 for a short time before the highly anticipated halving event. However, despite the upward trend, investors remain cautious, according to market analysts.
Market sentiment regarding the Bitcoin halving was quite optimistic until a week ago, with many analysts predicting a rise in prices after the event. This optimism was partially fueled by Bitcoin surpassing its 2021 cycle high even before the halving. BTC reached an all-time high above $73,000 in mid-March, attracting the attention of both institutional and individual investors.
But the weather has changed since then. Last weekend's deleveraging event following missile and drone launches from Iran towards Israel caused risky market sentiment to eclipse the previous euphoria surrounding the Bitcoin halving, according to Bitfinex Derivatives Manager Jag Kooner.
“It remains to be seen whether macro conditions will impact fundamentals, but sentiment is certainly more cautious now than it was just a week ago,” Kooner said in a note.
Jag Kooner said investors may dump Bitcoin when the halving occurs, an event called selling the news after tensions in the Middle East escalate.
*This is not investment advice.