Bitcoin’s much-anticipated “halving” event had little impact on the price trajectory, as market observers pointed to broader economic factors and geopolitical tensions shaping the cryptocurrency’s movements.
The halving, a fundamental change in Bitcoin technology that reduces the rate at which new Bitcoins are created, occurred over the weekend. Some enthusiasts expected a price surge similar to past halving events, but market reaction was muted.
As of Monday afternoon (GMT), Bitcoin was trading at $66,300, showing slight gains amid an environment dominated by geopolitical uncertainty. Mick Roche, senior trader at Zodia Markets, pointed out that events such as the easing of tensions between Iran and Israel had more impact on the price of Bitcoin than the halving itself.
Bitpanda CEO Eric Demuth highlighted Bitcoin’s increasing correlation with broader market sentiment, suggesting that retail trading patterns before and after the halving are not as clear.
Bitcoin’s resilience is partly due to its evolving relationship with traditional markets. Regulatory developments, such as the possible approval of a spot Bitcoin exchange-traded fund in the United States, have strengthened investor confidence and contributed to the recovery from the previous slump.
Ben Laidler, Global Market Strategist at eToro, highlighted the upcoming trend of institutional adoption of Bitcoin. Retail investors currently dominate the market, but regulatory changes could lead to greater institutional participation.
Despite their growing prominence, cryptocurrencies remain a niche asset class, with regulatory scrutiny and limited real-world utility tempering their mainstream appeal. Market watchers are also awaiting a regulatory decision on an Ethereum spot ETF, but hopes for imminent approval are dwindling.