Recent reports suggest escalating tensions in the Middle East and the stagnant price of Bitcoin at $62,800. Investors, cautious due to past Russia-Ukraine conflicts, are predicting a possible increase in tensions within two days. Currently, there is a downward trend in cryptocurrencies, except for DOGE.

Will Cryptocurrencies Experience an Upward Trend?

IBIT has reached a trading volume of $1.5 billion today, and given the price drop, a significant net exit is expected. Investors have identified new trading opportunities in the ETF channel following the weekend's decline. The losses observed after the opening of the US stock markets are primarily attributed to sales on the Binance exchange.

BTC has decreased to $62,274 but is eyeing $63,000. News updates and ETF inflow/outflow information could amplify volatility in the upcoming hours.

Hong Kong Acceptance and BTC Halving

Despite prevailing pessimism, there is a positive aspect as well. With the approval of Bitcoin in Hong Kong, BTC has surpassed the $67,000 mark today. The potential for recovery towards a new ATH is supported by this approval considering its significance.

The Reserve Risk metric is currently in the green zone, signaling that BTC is perceived as an attractive asset based on risk/reward needs. However, this signal alone may not be conclusive.

The leading cryptocurrency is anticipated to undergo its block reward halving soon. This event might give BTC an edge. While some experts believe the halving is already accounted for in the price, a halving that reduces new supply by half could have effects surpassing a typical sell-off during news events. Historical trends suggest this might be the final opportunity for over a 100% surge.

Furthermore, a resurgence of consolidation and the breach of the $63,700 support could lead to a deeper correction to levels of $61,800 and $54,000 in the short term. Nevertheless, the unpredictability of the future and the surprises inherent in the crypto market must be considered.

The original post can be found on COINTURK NEWS: How Will Cryptocurrencies Perform in the Current Market?