The Bitcoin Price Rise and Fall
The price of Bitcoin surged to $70,000 recently, driven by the fear of missing out (FOMO) related to the ‘Uptober’ rally. However, the positive sentiment among buyers has been dampened by recent technical chart breakdowns, the possibility of U.S. Federal Reserve interest rate cuts, and uncertainties surrounding Donald Trump’s re-election prospects.
Geopolitical Risks Impact the Markets
Bitcoin experienced a drop to its lowest point in 24 hours, reaching $65,521, following Israel’s retaliatory strikes against Iran and reports of an investigation by the U.S. Department of Justice into Tether’s stablecoin. Israel has taken targeted action against Iran, using more than 100 aircrafts in response to recent attacks by the Iranian regime on Israeli targets and citizens.
The U.S. government has expressed its support for ending the conflict ahead of the elections. Secretary of State Antony Blinken has encouraged Israeli Prime Minister Benjamin Netanyahu to consider plans for ceasefire negotiations.
Tether’s Value Loss Causes Market Shake
According to the Wall Street Journal, the U.S. government is investigating Tether for potential violations of sanctions and anti-money laundering rules. However, Tether’s CEO, Paolo Ardoino, has stated that there is no indication that the cryptocurrency firm is under investigation.
Derivative Markets Pose Challenges for Bitcoin’s Price Surge
Options trading on Deribit suggests a 9.58% probability that Bitcoin’s price will surpass $100,000 by the expiration date of December 27. This indicates that achieving new highs may be difficult for Bitcoin in the near future.
Currently, Bitcoin is trading around $67,035, with trading volume increasing by 30% as investors adjust after the recent decline. However, traders caution that a potential drop could push Bitcoin below $64,000.
The U.S. dollar index (DXY) has fluctuated, surpassing 104 following recent macroeconomic data, while the yield on the U.S. 10-year Treasury has slightly dipped to 4.242%. Investors may expect stability in the DXY and Treasury yields.
Bitcoin’s price continues to be influenced by geopolitical events and financial regulations. Investors are closely monitoring the market for future movements.
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Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry a risk, and should conduct their own research.
