Though industry insiders said on Monday that the cryptocurrency's fortunes were more directly related to broader financial market emotions and geopolitics, the so-called halving event of Bitcoin has had little effect on its price thus far.
With the intention of reducing the rate at which new bitcoins are created, the "halving" of the cryptocurrency, which took place on Saturday at 00:14 GMT, was much anticipated by aficionados.
Every four years, there is a shift in price of bitcoin, and some enthusiasts of the cryptocurrency have suggested that a rise in price following past halvings would indicate a potential future rally.
There was not much of an impact by Monday at 14:15 GMT, when bitcoin was trading at $66,300. It was up 3.4% on Monday and up 1.2% last week, but after reaching an all-time high of $73,794 last month, it has mainly been directionless.
"The geopolitical events unfolding at the minute are having a larger impact than any impact from the halving. So that’d be the perceived easing of tensions between Iran and Israel," said Mick Roche, senior trader at Standard Chartered's crypto arm, Zodia Markets.
Monday saw a partial recovery of global stock losses as investors retracted some defensive moves they had made due to concerns over escalating hostilities in the Middle East.
The CEO of Bitpanda, an Austrian cryptocurrency broker, Eric Demuth, stated that there was no discernible pattern of retail trading activity surrounding the halving and that bitcoin was becoming more and more reliant on the mood of the whole market.
Crypto already has a lot in common with equities. The same individuals that trade IT and equities also trade cryptocurrencies "added the speaker.
The anticipation surrounding the licencing of spot bitcoin exchange-traded funds (ETFs) by US regulators last year contributed to the cryptocurrency's recovery from a string of losses in 2022.
"Institutionalisation" is the current focus for bitcoin, according to Ben Laidler, global markets strategist at eToro.
Retail investors currently possess the majority of bitcoin, but Laidler anticipates that legal reforms in the future may make it simpler for businesses, banks, and central banks to own bitcoin.
According to market tracker CoinGecko, cryptocurrencies are still a tiny asset class, with a combined value of about $2.5 trillion.
Regulators caution that they are dangerous, speculative, and have few practical use.
The second-largest cryptocurrency, ether, is the subject of market speculation as to whether the U.S. Securities and Exchange Commission will permit spot ETFs for it. However, according to Demuth and Roche, there is less chance that this will occur in May.
(Source:www.theprint.in)
With the intention of reducing the rate at which new bitcoins are created, the "halving" of the cryptocurrency, which took place on Saturday at 00:14 GMT, was much anticipated by aficionados.
Every four years, there is a shift in price of bitcoin, and some enthusiasts of the cryptocurrency have suggested that a rise in price following past halvings would indicate a potential future rally.
There was not much of an impact by Monday at 14:15 GMT, when bitcoin was trading at $66,300. It was up 3.4% on Monday and up 1.2% last week, but after reaching an all-time high of $73,794 last month, it has mainly been directionless.
"The geopolitical events unfolding at the minute are having a larger impact than any impact from the halving. So that’d be the perceived easing of tensions between Iran and Israel," said Mick Roche, senior trader at Standard Chartered's crypto arm, Zodia Markets.
Monday saw a partial recovery of global stock losses as investors retracted some defensive moves they had made due to concerns over escalating hostilities in the Middle East.
The CEO of Bitpanda, an Austrian cryptocurrency broker, Eric Demuth, stated that there was no discernible pattern of retail trading activity surrounding the halving and that bitcoin was becoming more and more reliant on the mood of the whole market.
Crypto already has a lot in common with equities. The same individuals that trade IT and equities also trade cryptocurrencies "added the speaker.
The anticipation surrounding the licencing of spot bitcoin exchange-traded funds (ETFs) by US regulators last year contributed to the cryptocurrency's recovery from a string of losses in 2022.
"Institutionalisation" is the current focus for bitcoin, according to Ben Laidler, global markets strategist at eToro.
Retail investors currently possess the majority of bitcoin, but Laidler anticipates that legal reforms in the future may make it simpler for businesses, banks, and central banks to own bitcoin.
According to market tracker CoinGecko, cryptocurrencies are still a tiny asset class, with a combined value of about $2.5 trillion.
Regulators caution that they are dangerous, speculative, and have few practical use.
The second-largest cryptocurrency, ether, is the subject of market speculation as to whether the U.S. Securities and Exchange Commission will permit spot ETFs for it. However, according to Demuth and Roche, there is less chance that this will occur in May.
(Source:www.theprint.in)
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