The Price Surge of Bitcoin
Bitcoin experienced a significant surge in price, reaching $70,000 as a result of the Fear of Missing Out (FOMO) related to the ‘Uptober’ rally. However, this positive sentiment among buyers has been dampened by recent technical chart breakdowns, the potential for interest rate cuts by the U.S. Federal Reserve, and uncertainties surrounding Donald Trump’s re-election prospects.
Impact of Geopolitical Risks on the Markets
Bitcoin’s value dropped to a low of $65,521 within a 24-hour period following Israel’s retaliatory strikes against Iran and reports of the U.S. Department of Justice investigating Tether’s stablecoin. In response to recent attacks by the Iranian regime on Israeli targets and citizens, Israel carried out precision strikes using over 100 aircraft.
The U.S. government has expressed its support for ending the conflict before the elections. Secretary of State Antony Blinken urged Israeli Prime Minister Benjamin Netanyahu to consider plans for ceasefire negotiations.
Tether’s Value Loss Creates Ripples in the Market
The U.S. government is currently investigating Tether for potential violations of sanctions and anti-money laundering rules, as reported by the WSJ. 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 indicates a 9.58% probability of Bitcoin’s price surpassing $100,000 by the expiration date of December 27. This suggests that reaching new highs in the short term may be difficult for Bitcoin.
At present, Bitcoin is trading at around $67,035, with trading volume increasing by 30% as investors adjusted after the recent decline. However, traders caution that a potential drop could push Bitcoin below $64,000.
The U.S. dollar index (DXY) has experienced fluctuations, surpassing 104 following recent macroeconomic data, while the yield on the U.S. 10-year Treasury slightly dipped to 4.242%. Investors may anticipate stability in the DXY and Treasury yields.
Bitcoin’s price movement continues to be influenced by geopolitical events and financial regulations. Investors are closely monitoring the market for future developments.
You can stay updated with our news on Telegram, Facebook, Twitter & Coinmarketcap.
Disclaimer: The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies, and conduct their own research.
