Cryptocurrency bitcoin faces rejection at $106K, amid escalating Middle East attacks and President Trump's Iran threats over the weekend.
Bitcoin Slips amid Middle East Tensions and Trump's Threats
Bitcoin soared past $106,000 recently, but the ongoing tensions in the Middle East and Donald Trump's comments on Iran sent it plummeting by over a grand.
The primary cryptocurrency was on a roll earlier in the week, reaching over $110,000. However, each rally was swiftly thwarted, leaving bitcoin stuck under $106,000. Despite a brief recovery to $108,400, the escalating hostilities in the Middle East resulted in another price drop, pushing BTC down to under $103,000.
Even as the conflict continued, with Iran responding in kind, Bitcoin's price managed to recover some ground and even climbed back above $106,000 recently. But Trump's latest threats stalled its progress once more, leaving it hovering around $105,000.
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Trump's remarks came at a time when most altcoins were already in the red on a daily basis, with Ethereum, Dogecoin, Binance Coin, Chainlink, XRP, and Solana all experiencing drops of around 1%. HYPE dropped the most among the larger-cap altcoins, losing 5% of its value. In contrast, Pi Network's native token jumped 5% following a recent crash.
Newcomer AB skyrocketed by 20%, enabling it to join the ranks of the top 100 cryptocurrencies.
The total crypto market cap dropped by approximately $20 billion since yesterday, sitting at $3.380 trillion.
Bitcoin and Crypto Market Insights
Despite heightened geopolitical risks, Bitcoin and other major cryptocurrencies have shown a relatively muted response. Bitcoin continues to trade sideways, held back by a lack of bullish momentum as investors ponder the potential for further escalation [1][3].
Similarly, other leading cryptocurrencies like Ethereum and XRP have struggled to gain traction. Ethereum has held key support areas, while XRP lingers below critical resistance points, reflecting market hesitance [1].
Additional Notes
While some view Bitcoin as a potential digital safe haven during geopolpolitical crises, recent price action indicates that it continues to behave more like a risk asset, similar to stocks. This means that Bitcoin trails other safe-haven assets like gold, which has surged to near all-time highs this year [2].
References
- CoinDesk
- Bloomberg
- Reuters
- Amid ongoing geopolitical tensions and President Trump's comments, Bitcoin's trading remains sideways, indicating a lack of bullish momentum as investors ponder potential escalations.
- Similarly, Ethereum, like Bitcoin, struggles to gain traction, lingering below critical resistance points, reflecting market hesitance during these uncertain times.
- While bitcoin and other major cryptocurrencies, such as Ethereum, may not behave like traditional safe-haven assets during geopolitical crises, crypto markets continue to reflect a blend of crypto, sports, and geopolitical factors in their trading activities.
