After falling below $60,000 early in Friday's trading session, the price of Bitcoin (BTC) showed a sharp upward move, approaching the $65,000 mark.
At the time of writing, BTC is trading at $64,820, up 5.08% in the last 24 hours.
On April 19th, escalating geopolitical tensions in the Middle East affected the cryptocurrency market.
On Friday night, Israel launched retaliatory missile strikes against Iran near the airport of the city of Isfahan, where Iran's military-industrial complex and nuclear industry are concentrated. On the eve of the strike, Iranian President Ibrahim Raisi warned Israel that Tehran would give a "tough response" to any attack on its territory.
At the same time, rumors that there may be no further escalation of the military conflict between Israel and Iran led to the rise of Bitcoin.
At the same time, BTC's rebound from the lows occurred hours before the alleged halving, a key event not only for Bitcoin but for the entire cryptocurrency market.
Excitement is building in the cryptocurrency community as the halving is only 100 blocks away. The next Bitcoin halving will further reduce this reward to miners to 3.125 BTC and will occur when exactly 840,000 blocks have been mined.
"Today is the eve of the BTC halving, and the market appears to have formed a well-defined base of support around the recent lows," wrote analysts at QCP Capital in their latest Asia Morning Color report.
However, a trader nicknamed @52kskew noted on his X page that high volatility has contributed to the burning of both long and short BTC positions.
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"The shorts are inflated here, and now there is more interest from the long side, i.e., opening long positions," he noted.
It's worth noting that the halving will increase the scarcity of Bitcoin and could potentially lead to a new BTC rally, which some analysts believe will take the asset to $80,000 and beyond.
Further reading: Long-term BTC holders increased activity amid price collapse