Bitcoin Remains above Key Level after Middle East Fighting Worsens
Bitcoin has fallen this week as a result on increased conflict in the Middle East, and it could remain low while tensions there are high.
Quick overview
- Fierce fighting between Iran and Israel has caused global markets, including stocks and cryptocurrencies, to decline.
- Bitcoin dropped to $105,037 following missile strikes on Iran's nuclear sites, marking a 2.23% decrease.
- Maintaining a value above $100K is crucial for Bitcoin to retain market confidence and avoid increased selling pressure.
- Ongoing Middle Eastern tensions and economic factors, including inflation reports, are influencing Bitcoin's price predictions.
Fierce battling in the Middle East between Iran and Israel caused markets around the world to dip on Friday, including the stock market and the cryptocurrency market.
Bitcoin (BTC) dipped down to $105,037 (BTC/USD) after Israel launched missiles at Iran’s nuclear sites. This was a 2.23% drop for the coin after it had already fallen earlier in the week. However, Bitcoin is still above an important level that should help it gain back lost ground quickly.
As long as Bitcoin remains above $100K, it will hold onto its psychological advantage in the market. If it drops below that mark, though, then investors may look to other cryptocurrencies that they believe hold more value and are less likely to lose their gains. Earlier in the year, when Bitcoin fell below that crucial level in February, selling pressure was incredibly high. Many investors gave up on Bitcoin, and their departure caused the coin to plummet even further.
Bitcoin fell to a low of $76K earlier this year as a result of the increased selling pressure and decreased consumer confidence in its ability to regain its lost value. Because the coin is still valued above $100K, it may be able to make a comeback in the near future.
Bitcoin Buying and Selling Factors to Consider
Bitcoin price predictions are changing rapidly as the value of the token shifts. Bitcoin was not able to hit a new all-time high this week as expected, due primarily to increased tensions in the Middle East. If the fighting there continues, then Bitcoin is less likely to hit those sky-high price predictions that some analysts have made for the coin this year. It may not be able to reach $200K or even $150K by the end of 2025 if the fighting between Israel and Iran continues.
Bitcoin is also being influenced by economic factors, and several economic reports released this week to indicate the inflation trend. Those reports covered producer prices and consumer prices, both of which increased. However, both of those numbers were lower than expected, which could help inflation remain where it is or at least keep it from climbing too quickly.
If inflation does not move lower, though, then the Federal Reserve is likely to hold off on interest rate cuts or at least minimize them. That will hinder Bitcoin’s ability to gain value quickly, since interest rate cuts usually spur Bitcoin boosts.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
