Bitcoin BTC +7.47% gained approximately 1.7% over the past 24 hours, mirroring a recovery in global equities. The foremost cryptocurrency was changing hands for $66,002 at 6:12 a.m. ET., according to The Block's Price Pages. The resurgence is a reversal of last week's risk-off sentiment prompted by concerns over a potential escalation of conflict in the Middle East.

According to ETC Group Head of Research André Dragosch, last week witnessed significant downward reversals in the global crypto hedge fund beta and saw a dominance of bitcoin long futures liquidations. "However, cryptoassets have rebounded from the losses sparked by geopolitical tensions amid the bitcoin halving," Dragosch said. In a Monday report, the analyst posted data from an in-house "cryptoasset sentiment index" which showed a recovery from a year-to-date low that was induced by last week's rise in geopolitical tensions.

Dragosch's observation was followed by his analysis that any positive performance effect linked to the halving has yet to be priced into the market. Additionally, he forecasted that any such effect might only begin to manifest approximately 100 days after Friday's event. "The reason is that the supply deficit induced by the bitcoin halving only tends to accumulate over time and is rather insignificant in the very short term," he added.

The price of bitcoin has risen by around 1.7% in the past 24 hours. Image: The Block.