The US got involved in the tension between Israel and Iran and hit Iran. This situation negatively affected Bitcoin (BTC) and altcoins, with the BTC price falling below the psychological level of $100,000.
While the downward anxiety continues in the markets and investors, Singapore-based analysis company QCP Capital evaluated the latest situation.
At this point, QCP analysts first noted that the recent sell-off in BTC constituted its lowest print since breaking the psychological $100,000 level on May 8.
The sell-off in Bitcoin and major altcoins was triggered by Iran’s threat to close the Strait of Hormuz, a move seen as damaging to global oil flows.
However, Bitcoin returned above $100,000 this morning, suggesting that the pullback over the weekend was mainly due to macro factors.
At this point, despite Iran’s threats of retaliation against the US, the market believes that the possibility of a major conflict is limited and the US is pressuring Iran through diplomatic channels to surrender and stop.
According to analysts, this played a role in stabilizing the market.
QCP also said that traditional markets also reacted calmly to the developments between the US and Iran over the weekend, as US stock futures, oil and gold prices returned to Friday levels after initial fluctuations.
This suggests that investors see this as a regional risk rather than a global crisis.
Analysts say the Bitcoin market is at a critical turning point balancing risk appetite and safe-haven demand amid geopolitical uncertainty.
“….Still, BTC is consolidating near the $100,000 level even after a surge in leveraged long positions.
This makes the next few days particularly important.
The market remains at a crossroads where digital assets are straddling a critical line between risk-on momentum and risk-off defensiveness amid ongoing geopolitical uncertainty.”
The analytics firm also listed the key events to watch this week as follows:
“Tuesday (Jun 24): Fed Chair Powell’s Speech Wednesday (Jun 25): Fed Chair Powell’s Speech Thursday (Jun 26): US GDP and Unemployment Data Friday (Jun 27): US Core PCE”
*This is not investment advice.