Some intense action just hit the Bitcoin market! Bitcoin’s price tumbled below $65K following the latest Federal Reserve meeting and rising geopolitical tensions in the Middle East. Here’s what went down.
After Fed Chair Jerome Powell’s press conference, Bitcoin initially traded around $66,500. But as the news broke that Iran’s leadership ordered retaliatory attacks against Israel, Bitcoin dropped to $64,500, marking a more than 2% decline over the past 24 hours. Major altcoins like ETH, SOL, AVAX, and ADA also took a hit, though XRP managed to retain some of its earlier gains.
The geopolitical situation in the Middle East, specifically the reported retaliation by Iran for the killing of Hamas leader Ismail Haniyeh, has investors on edge, worried about a broader conflict in the region. This uncertainty is reflected in the crypto market’s reaction.
Meanwhile, traditional assets like gold and crude oil saw significant gains. Gold jumped 1.5% to $2,450, and crude oil surged 5%. Even equities had a strong day, with the Nasdaq 100 and S&P 500 closing significantly higher, thanks to a major boost from Nvidia.
So why the difference? According to Zach Pandl from Grayscale, it’s all about traders’ positioning before the Fed meeting. Equities were slightly under-owned after recent downturns, whereas Bitcoin had seen strong inflows recently. But looking at the bigger picture, the combination of potential Fed rate cuts, increased focus on crypto policy, and the possibility of a second Trump administration could actually spell positive news for Bitcoin in the long run.
Stay tuned and keep an eye on these market dynamics as they evolve!
