The price of Bitcoin fell below $60,000 for the first time in a month, declining by about 5% to $59,888 before recovering slightly. This drop happened just before the halving, an event that occurs every four years and historically boosts Bitcoin prices. However, concerns arose that the positive effects of the halving might already be factored into the current price. This, along with a general reluctance to take investment risks and tensions in the Middle East, contributed to a prolonged market slump.

Nathanaël Cohen, Co-Founder of INDIGO Fund, pointed out that uncertainty about whether the halving would significantly impact the market or not and the risk-averse attitude of investors were influencing factors.

Additionally, Bitcoin's decline was accelerated by the liquidation of long crypto positions, amounting to around $780 million, following Iran's attacks on Israel. Despite these challenges, some market participants expect Bitcoin's long-term prospects to remain bullish. Ravi Doshi, the market manager at FalconX, mentioned that longer-term purchases are being made on the derivatives desk in anticipation of higher prices in the latter half of the year.

*Please note that this information does not serve as financial advice.