Bitcoin (BTC-USD) caught a bid on Wednesday after suffering its biggest single-day drop since the demise of Sam Bankman-Fried's cryptocurrency empire.

The first-ever digital token advanced 2% to $64K at 11:22 a.m. ET, down some 12% from the $73.1K record high set on March 12. On Tuesday, bitcoin (BTC-USD) dropped more than 8% to below $62K, marking the biggest intraday slump since Nov. 9, 2022, when prices tumbled some 15% as Bankman Fried's FTX crypto exchange filed for bankruptcy protection.

Mikkel Morch, founder of digital asset investment fund ARK36, attributed the recent BTC selloff to uncertainty over the upcoming halving event, among other factors.

"Rather than solely attributing Bitcoin's current fluctuations to the impending halving, we suggest a nuanced view, considering factors like spot Bitcoin ETF flows, evolving miner profitability post-halving and general market psychology with high “greed levels” on pretty much all fronts.," he said in an emailed statement.

Bernstein analyst Gautam Chhugani expects "general caution" among market participants, with the halving slated to occur next month. "It seems we may reach dip-buying conditions sooner with futures driven leverage cleaned up, although with halving still 30 days away and ETF flows slowing down (last 2 days been outflow days), we may have some more correction left," he wrote in a note.

Crypto-related stocks, too, gapped up in late morning trading. Riot Platforms (RIOT), which J.P. Morgan upgraded on hashrate growth prospects, accelerated 5.3%, Coinbase (COIN) rose 4%, MicroStrategy (MSTR) gained 1.9%, Marathon Digital (MARA) +7.3% and CleanSpark (CLSK) +7.8%.