Despite regulatory uncertainty with news of the SEC lawsuit against Binance and Coinbase, bitcoin saw a strong rebound over the last 24 hours. The coin saw prices as high as $27,243.60, according to a Tweet by CoinGecko on June 6.
Steps towards a recovery
At the time of writing, bitcoin has since retracted back to $26,508.01, where it currently sits at a 2.03% gain, which still positions the coin in the top 10 gainers for June 7.
This recovery comes after a tumultuous period during which the cryptocurrency plummeted below $25,500 following a lawsuit filed by the Securities and Exchange Commission against leading crypto broker Coinbase Global.
As the June 7 trading session commenced, bitcoin found its footing and regained stability within the familiar range of $26,000 to $27,000. This price zone has persisted for several weeks, ever since bitcoin retreated from its impressive 10-month high above $30,000 in April.
Although bitcoin’s gains may come as a surprise to some, the Twitter community has been quick to turn to the cryptocurrency industry’s arduous bear market, which lasted over a year and resulted in a substantial decline in market capitalization from nearly $3 trillion to $1.1 trillion.
As a consequence of this prolonged downturn, it is widely believed that many potential sellers have already exited the market, leaving only dedicated investors and capital within the crypto ecosystem.
Anticipation for bitcoin halving grows
Other speculation by the coin’s most recent price increase can be linked back to a research report published by JP Morgan. The report predicts that retail demand for bitcoin (BTC) will continue to thrive in the upcoming year leading to the next halving event for the world’s largest cryptocurrency.
The report highlights that the recent surge in retail demand can be partly attributed to the emergence of Bitcoin Ordinals and BRC-20 tokens.
However, the key factor driving retail investor interest is the approaching April 2024 halving event.
JP Morgan anticipates that as this event draws near, retail demand for bitcoin is expected to strengthen significantly, which has since been echoed by the Twitter community.
With the halving event just over 300 days away, investors will likely continue to remain a close eye on price charts, despite regulatory uncertainty.