Despite the highly anticipated halving event, Bitcoin’s price has remained relatively stable, hovering around $66,300 on Monday. Experts believe that external factors, such as the geopolitical tensions between Iran and Israel and the broader market sentiment, are overshadowing the impact of the halving.
While some crypto enthusiasts had expected a price surge similar to previous halvings, the lack of a significant reaction highlights the increasing interdependency of Bitcoin with traditional financial markets. The CEO of Bitpanda, Eric Demuth, notes that Bitcoin’s trading patterns closely resemble stock trading, with many of the same investors involved in both asset classes.
Concerns over regulatory approval for spot Bitcoin exchange-traded funds (ETFs) in the United States are not helping Bitcoin’s price action either. While the excitement around ETF approval helped propel Bitcoin’s recovery last year, hopes for a May approval for Ether, the second-biggest cryptocurrency, are fading according to industry sources.
The crypto market remains a niche asset class, with its combined value pegged at around $2.5 trillion by CoinGecko. However, it is worth noting that cryptocurrencies are still considered speculative and risky investments with limited real-world use cases. Regulators worldwide continue to warn investors about these risks.
