Bitcoin surged above \(64,000 on Friday, bouncing back from a dip below the \)60,000 threshold amidst the cryptocurrency’s ongoing volatility in anticipation of the imminent halving event.

As of approximately 6:15 a.m. ET, the price of bitcoin stood at $64,739.04, reflecting a more than 5% increase compared to the previous 24 hours, based on data from CoinDesk.

In tandem with bitcoin’s rise, other cryptocurrencies also saw gains, with Ether climbing over 3% and Solana experiencing an approximate 10% increase.

Following a decline below $60,000 late Thursday, bitcoin’s price trajectory has been marked by fluctuations in the lead-up to the approaching halving event scheduled for this week. Halving, a recurring occurrence every four years encoded in bitcoin’s protocol, involves halving the rewards for miners, leading to a reduced influx of bitcoin into the market.

Historically, preceding bitcoin halving events, the cryptocurrency has embarked on bullish trends.

The recent volatility in crypto prices was influenced by Iran’s unprecedented drone and missile strike on Israel over the weekend, with bitcoin hovering around $70,000 on Saturday.

However, beyond geopolitical tensions, bitcoin faces additional challenges.

According to analysts at cryptocurrency bank Amina, various factors such as miners’ activities, trading volumes, ETF flows, and US inflation data have contributed to the prevailing bearish sentiments in crypto markets. Miners, in anticipation of reduced rewards post-halving, are selling off their bitcoin holdings to bolster their financial positions, given the potential for some operations to become unprofitable.

Amina’s research note highlighted that miner balances are nearing historic lows due to substantial sell-offs as miners aim to capitalize on profits before the halving event.

The outflow of funds from spot bitcoin exchange-traded funds has been negative since the previous week, exacerbating the downward pressure on bitcoin prices.

Despite the challenges, bitcoin has demonstrated resilience, showing a 50% price surge this year. In March, bitcoin reached an all-time high surpassing $73,000.

The approval of bitcoin exchange-traded funds in the US earlier this year significantly contributed to the gains witnessed in the cryptocurrency market throughout last year and into 2024.