The wider cryptocurrency market has seen over $290 million liquidations in the past 24 hours. Of these liquidations, the majority — around $154 million — were long positions.

Bitcoin BTC -4.42% liquidations surged to over $108 million as the asset plummeted below the $60,000 mark, but subsequently rebounded. It is now struggling to maintain its position above the $64,000 mark. According to Coinglass data, liquidations were nearly evenly split between bitcoin longs and shorts, totaling just over $54 million and $53 million, respectively.

The largest digital asset by market capitalization increased by around 5.3% in the past 24 hours and was changing hands for $64,739 at 5:22 a.m. ET, according to The Block's Price Page. The GM 30 Index, representing a selection of the top 30 cryptocurrencies, has increased by 4.46% to 129.97 in the past 24 hours.

The bitcoin price has increased by over 5% in the past 24 hours. Image: The Block.

Bitcoin's immediate post-halving response

Bitcoin’s next halving event, when the miners’ block subsidy reward gets cut in half, is now less than 100 blocks away, according to The Block’s halving countdown.

A recent report from 21Shares gave analysis on the potential fluctuations in bitcoin's price due to the imminent halving event, taking into account the influence of significant geopolitical factors such as conflicts in the Middle East and control of oil transportation routes. In the report, 21Shares analysts predicted that bitcoin will likely continue in a lateral movement until there is more certainty regarding the current geopolitical concerns.

"Should these geopolitical risks stabilize, bitcoin is likely to resume its upward trend post-halving, supported by a growing institutional interest in digital assets led by the U.S. spot and recently approved Hong Kong ETFs. The evolving geopolitical landscape, coupled with increasing institutional adoption and the scarcity of bitcoin's supply, sets the stage for a potential bullish continuation in the weeks following the halving event," the analysts added.

Macro factors to affect short-term price performance

Coinbase analyst David Han also noted the impact of macroeconomic factors, exacerbated by tensions in the Middle East, in this week's Coinbase Monthly Outlook report. "We think that activity in the short term is more likely to be driven by macro factors, even as crypto fundamentals overall remain strong," Han said.

He added that these macro factors include increased geopolitical tensions, higher for longer rates, and rising national debts. "The recent elevated correlation of altcoins against bitcoin underlines this, indicating bitcoin’s anchor role in the space even as it firms its position as a macro asset," he said.