Cryptocurrencies plummet up to 11% due to tension in the Middle East awaiting the halving

Cryptocurrencies plummet up to 11% due to tension in the Middle East awaiting the halving

The event, which will result in a reduction in the new supply of Bitcoin historically acted as a catalyst for price increases.


Bitcoin corrects course while waiting for the halving.


However, some skeptics question whether a repeat of this performance is likely, considering that Bitcoin It already reached an all-time high in mid-March.

Bitcoin is trading at US$63,000, a drop of more than 4% in the last day. Meanwhile, the Ethereum He fights not to lose the US$3,0000.

Despite the short-term uncertainties, he remains optimistic about the future of Bitcoin and believes that the halving will ultimately propel the digital asset to new heights. It is worth remembering that the main cryptocurrency reached an all-time high of US$73,750 last month, corthosy of flows into Bitcoin exchange-traded funds in the United States.

Impact on altcoins

Red dominated the altcoin landscape, with notable declines such as the 11% drop in Solana (SOL) and 10% in Toncoin (TON). Other digital assets such as XRP, Cardano (ADA), Avalanche (AVAX), Dogecoin (DOGE) or Shiba Inu (SHIB) also experienced losses, ranging between 3% and 8%.

Despite the initial momentum generated by the approval of BTC and ETH exchange-traded funds (ETFs) in Hong Kong, escalating tensions in the Middle East quickly affected the cryptocurrency market. Fear of a possible conflict between Israel and Iran created a climate of caution among investors, reflected in a net outflow of $85 million from BTC ETFs during the week.

The recent inflation data in the United States, which exceeded expectations, also influenced the economic outlook, causing a downward revision in the projections of interest rate cuts for 2024. Anticipating cuts of between 25 and 50 basis points over Throughout the year, investors are adjusting their strategies due to the possibility of a tightening of monetary policy in the long term.

In this scenario, trading volumes remain strong, with a daily average of approximately $3.2 billion in ETFs.

However, the path forward looks challenging, with inflation levels persisting above central banks’ targets, which could pose further headwinds for risk assets in the near term. Investors are attentive to signals from financial indicators, prepared to adjust their portfolios in response to changes in economic expectations.

Source: Ambito

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