Bitcoin's upward momentum threatens to slip beneath $73,000 amid waning confidence caused by Iran tensions.
Bitcoin could not hold a breakout above $73,000 as fears grew that US‑Iran tensions could reignite. Reports of Iran using crypto for Strait of Hormuz shipments sparked an early rally, but warnings from Iranian officials about violating the ceasefire dampened sentiment. Crude oil spiked to $97 per barrel, further discouraging risk‑on assets like crypto. US inflation data showed the headline PCE rising 0.4% while core inflation stayed above the Fed’s target, indicating only a gradual easing of price pressures. Revised Q4 GDP growth fell to a 0.5% annualized rate, signaling a barely expanding economy. A weaker dollar and doubts about recession‑avoidance policies added to market uncertainty. An estimated $6 billion of leveraged shorts clustered between $72,200 and $73,500 creates a potent sell wall that restrains price gains. Bitcoin briefly reclaimed $72,000, but the remaining short positions could push it back toward $68,000 if the level above $73,000 is not held. Clearing this liquidity pressure is seen as essential for restoring investor confidence and enabling a new rally.
