- Tensions in the Middle East caused a significant 13% drop in Bitcoin prices over the weekend, though it has since stabilised at around US$65,316.
- Swyftx analyst Pav Hundal asserts that despite market fluctuations due to geopolitical events, Bitcoin’s core fundamentals remain unchanged.
- Reflecting on Bitcoin’s quick recovery from past crises, Hundal emphasises Bitcoin’s resilience and potential for long-term stability amidst volatility.
- Market watcher Scott Melker says consensus is for a continued rally, but the market is not historically in favour of what everyone is predicting.
Financial markets are on edge amid recent developments in the Middle East, after Iran retaliated against earlier strikes by Israel on an Iranian embassy compound.
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Fears this could spread into a full-blown war have caused Bitcoin to drop as much as 13% over the weekend. The number one crypto has somewhat steadied itself and is currently trading at US$65,316 (AU$100,855).
On Monday, April 8, BTC had reached US$72,257 (AU$ 111,553) coming close to the all-time high from March 2024.
Underlying Fundamentals Have Not Changed Says Analyst
Swyftx Lead Market Analyst Pav Hundal said in a statement that though the recent geopolitical events in the Middle East have injected volatility back into the market, fundamentally nothing has changed.
Though recent events in the Middle East may have sparked volatility over Bitcoin’s price, the underlying fundamentals have not changed.
Pav Hundal Therefore, short-term market fluctuations influenced by external events do not compromise the long-term prospects and stability of Bitcoin.
Hundal added that during the Silicon Valley Bank crisis in March 2023 Bitcoin quickly recovered – despite an initial sharp decline in its price, and surged by 50% in the following month.
You only have to look back at other recent periods of uncertainty, such as the Silicon Valley Bank crisis in March 2023. Where we did see a similar capitulation event, yet Bitcoin prices soared in a 50% rally over the next 30 days.
Pav Hundal This shows that Bitcoin, while susceptible to immediate market reactions, tends to recover and even thrive in periods of uncertainty, highlighting its potential as a robust investment in volatile times.
How Long Might Bull Run Last?
On the question of how long the bull run lasts, market observer Scott Melker said after many conversations at the Paris Blockchain Week, the consensus is “12 – 18 months of up only.”
According to The Wolf Of All Streets not one person he spoke to at the conference believes the top is in.
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However, things don’t always go as expected, so only time will tell if Hundal and Melker are correct. Melker put it like this:
When, in the history of markets, has the thing that everyone believes will happen happened?
Scott Melker
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