Over the last 24 hours, Bitcoin (BTC) has seen a gain of approximately 1.7%, reflecting a rebound in global equities. At 6:12 a.m. ET, the leading cryptocurrency was trading at $66,002, as reported by The Block’s Price Pages. This resurgence marks a reversal from the risk-averse sentiment of last week, which was driven by concerns over potential escalations in the Middle East conflict.
André Dragosch, Head of Research at ETC Group, noted significant downward reversals in global crypto hedge fund beta last week, accompanied by a dominance of liquidations in bitcoin long futures. However, he highlighted that cryptoassets have bounced back from the losses triggered by geopolitical tensions following the bitcoin halving. Dragosch shared data from an in-house “cryptoasset sentiment index” in a Monday report, indicating a recovery from a year-to-date low influenced by last week’s geopolitical tensions.
Dragosch further analyzed that any positive performance effect associated with the halving event has yet to be fully factored into the market. He projected that such effects might only start to materialize approximately 100 days after the event on Friday. He explained that the supply deficit caused by the bitcoin halving typically accumulates gradually over time and is relatively insignificant in the short term.
In Monday’s trading, Bitcoin witnessed an increase in tandem with equity indices. The European STOXX 600 saw a rise of 0.25%, while pre-market S&P 500 futures in the U.S. indicated a 0.36% uptick. London’s commodities-heavy FTSE 100 surged approximately 1%, emerging as the top performer among major European benchmarks.
