Bitcoin this week: 5 crucial facts to grasp before the halving potentially triggers a $70K BTC price mark

Bitcoin (BTC) is facing a challenging start to the week as it tries to recover from a 15% price drop. The recent events in the Middle East are being compared to the cross-market crash caused by COVID-19 in March 2020, and sensitivity to geopolitics will be a key focus in the coming week. Altcoins have been hit harder than Bitcoin, with BTC/USD managing to hold the $60,000 support level. However, leverage has been wiped out, and 30% of open interest on Bitcoin has disappeared. The next block subsidy halving for Bitcoin is just days away, setting the stage for continued volatility in the market. This article provides an overview of the current state of Bitcoin and the crypto market, including price triggers and market reactions. The weekend saw a flash crash that caused losses in the crypto market due to geopolitical instability in the Middle East. Bitcoin and altcoins sold off rapidly, with Bitcoin reaching lows of just above $61,000. Altcoins suffered even more, losing up to 50% of their value. However, Bitcoin’s dominance over the crypto market cap reached three-year highs. Analysts suggest that the signs of a flash correction were already present. The liquidity on the largest exchange, Binance, is shifting, but overall, Bitcoin is holding above its previous cycle highs. The coming week will see the release of United States macroeconomic data and comments from Federal Reserve officials, including Chair Jerome Powell. The market’s response to geopolitical tensions in the Middle East will also be closely watched. Jobless claims data and inflation rates will be important for traders, who have been pricing out the odds of interest rate cuts this year. The market’s sensitivity to rates means that any irrational dip in data that reprices the outlook for rates is seen as a buying opportunity. The upcoming block subsidy halving for Bitcoin is overshadowed by the recent market volatility. Traders are focused on the price rather than the network event, which has been anticipated for months. Miners’ revenue streams will be reshaped as the number of new bitcoins per mined block is cut in half. Despite this, the BTC balance in known miner wallets has remained mostly flat. Spot Bitcoin and Ether ETFs have been approved for trading in Hong Kong, which is seen as a positive development for future Chinese participation. However, U.S. ETFs are experiencing a slowdown in inflows after a rapid acceleration in March. The sentiment in the crypto market remains “greedy” despite the recent price drop. The Crypto Fear & Greed Index is still in the “extreme greed” zone, indicating that investors are not deterred by the market volatility. Overall, the market’s reaction to the geopolitical tensions and upcoming events will continue to drive volatility in the crypto market. This article does not provide investment advice, and readers should conduct their own research before making any investment decisions.