No good or fresh news on the Bitcoin price front. The debilitating price drops continue with slight shoots up that aren’t enough to get Bitcoin over the $27,000 hump. It’s clear that the market isn’t headed in the right direction, and despite some positive signs, it seems there’s always some kind of crisis around the world that puts the price back down.
Right now, it’s the war between Israel and Hamas. The Palestinian terrorists brutally attacked Israel days ago, and Israel’s response was swift and even more brutal. With no end in sight in this war that currently totals thousands of dead on both sides, there are fears that the conflict will spread to neighboring oil-rich countries. If this happens the price of oil will certainly go up, and so will commodities. Rose gold is already over 1%. This could have repercussions in the crypto market, where Bitcoin’s price will take the hardest fall.
A Monday Slump
We’re in the middle of a Middle East crisis caused by the latest war, and it’s no wonder it’s affecting the crypto and commodities market heavily. On Monday, the crypto market fell over 2% due to rising oil prices and a drop in equities. The turmoil in the Middle East could lead to further price drops for Bitcoin too.
Following news of the bloody conflict, Bitcoin’s price fell almost immediately. The good news is that it has since rebounded, never going below $27,000. Bitcoin is still holding its ground like in the past month or a bit more, yet experts are adamant that it must hit $31,000 if we’re to hope new record heights by the end of the year.
Futures traders that bet on high prices saw more than $100 in liquidations for 24 hours since Monday. All alternative currencies also saw a sell-off. The crypto market has shown a bit of resilience and that may be more than enough to instill confidence among bulls. It’s not the bull run we’re all expecting, but it may be a start.
Geopolitical Turmoil Harms the Market
We’ve seen geopolitical turmoil hurt the market before. When the Russia-Ukraine war began and the US imposed sanctions on its rival, there was a major crypto market drop too. Luckily, Bitcoin and other altcoins rebounded soon. That happened in March last year. At the moment, we’re seeing a temporary dip following the news of the conflict between Israel and Hamas. But, the price is stable already, and with signs of resilience, we don’t think we’ll see it drop under $27,000. The problem is that we’re not seeing optimistic signs of a bull run too.
This is a normal process. When geopolitical turmoil hits the market, investors flee to gold. All risky assets are left aside and see declines. According to some experts, we should all take a look at the oil and energy market to see where Bitcoin’s headed. If the price of oil goes up, there will be another wave of sell-off equities. It might eventually lead to higher monetary restrictions, which might keep Bitcoin’s price locked in this range.