The price of Bitcoin (BTC) briefly fell below $60,000 U.S. with the highly anticipated halving event imminent.
The price of Bitcoin has since rebounded to trade at $64,750 U.S., up about 5% in the past 24 hours, as volatility increases ahead of the halving.
The halving is scheduled to occur on or around April 20 and will see the rewards for mining Bitcoin reduced by 50%. Halving occurs every four years and is written into the code of Bitcoin.
Past halving events have led to a sharp rise in Bitcoin’s price, but this time around it has led to a decline and increased volatility.
Analysts say the price of Bitcoin is also being impacted by geopolitical instability in the Middle East, as well as risk avoidance among investors as expectations for interest rate cuts this year fade and bond yields spike.
At the same time, flows into spot Bitcoin exchange-traded funds (ETFs) have been negative over the last week, which is putting further pressure on the largest cryptocurrency’s price.
Despite the current volatility, Bitcoin’s price is still up 47% so far in 2024.
