Will the price of Bitcoin plunge again?

crypthub

1 day ago

Ceasefire Sparks Bitcoin Rally

Bitcoin surged to $72,698 after a two‑week US‑Iran ceasefire was announced. The rally mirrored global equity gains and reflected hopes that reopening the Strait of Hormuz would calm supply‑chain worries. Its tight link to S&P 500 futures showed the move was driven by geopolitics more than crypto fundamentals.

Fragile Truce Undermines Momentum

Ceasefire violations and a “fragile truce” comment triggered a sell‑off, wiping out over $150 million in long Bitcoin futures. Israeli strikes on Hezbollah and Iranian claims of a U.S. breach revived risk concerns. The rally stalled at the $72,000 resistance, exposing technical weakness.

Fed Minutes Add Monetary Uncertainty

Fed minutes revealed an 11‑1 vote to keep rates at 3.5‑3.75 % and warned cuts depend on inflation staying in check. While a cut would normally boost crypto, doubts about timing create headwinds for Bitcoin. Markets now assign a 75.6 % chance rates will stay unchanged.

Technical Outlook and Near‑Term Risks

Bitcoin has struggled above $70,000 and could retest the $64,000 support if pressure continues. Renewed Middle‑East escalation would lift oil prices and reignite inflation fears, further weighing on the asset. The price was just over $70,900 at the time of writing.