Hassan Maishera
TL;DR
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BTC is down 2% and is now trading below $68,000 per coin.
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Market analysts believe that the leading cryptocurrency remains under pressure due to the ongoing Middle East crisis.
BTC Slumps Below $68k, Analysts Warn of Further Volatility
The cryptocurrency market opened the new weekly candle bearish, with Bitcoin and other major coins currently in the red.
Bitcoin, the leading cryptocurrency by market cap, is down by 2% in the last 24 hours and is now trading below $68,000.
The bearish performance comes as the crisis in the Middle East enters its fourth week, with the effect of the war affecting the cryptocurrency market.
In an email to Cryptowisser, Ruslan Lienkha, the chief of markets at YouHodler, pointed out that Bitcoin continues to trade within a well-defined downtrend channel, despite periodic local corrections and attempts at countertrend rallies. While short-term rebounds have provided temporary relief, they have not been strong enough to shift the broader market structure. The prevailing trend remains bearish, and current conditions suggest limited support for a sustained reversal in the near term.
“The macroeconomic backdrop remains the dominant factor shaping market sentiment. Ongoing geopolitical tensions continue to create uncertainty across global markets, particularly through their impact on energy prices. Elevated oil and gas prices are contributing to inflationary pressures, which in turn influence central bank policy and global liquidity conditions. In such an environment, investors tend to reduce exposure to higher-risk assets, including cryptocurrencies,” Lienkha added.
According to the analyst, an additional signal of market stress is evident in recent gold price action. Traditionally viewed as a safe-haven asset, gold has recently experienced episodes of selling pressure.
This is somewhat unusual during periods of heightened uncertainty and may indicate a broader liquidity need among market participants. In some cases, such behavior can be associated with institutional or even sovereign selling, as entities raise cash to meet financial obligations or stabilize domestic economic conditions.
Fed Keeps Interest Rates Unchanged
On Friday, the Federal Reserve decided to keep interest rates unchanged, a move that was widely anticipated by the market. This outcome represents a neutral scenario, providing neither a strong positive nor a negative catalyst for risk assets.
If inflation begins to rise again, potentially driven by sustained energy costs, the Federal Reserve may be forced to resume tightening by raising rates. Such a scenario would likely reduce liquidity and put additional pressure on both equities and cryptocurrencies.
This combination of geopolitical risk, elevated energy prices, uncertain monetary policy, and fragile equity market performance creates a challenging environment for Bitcoin.
With Bitcoin currently in the red, altcoins are also underperforming. Ether risks dropping below $2,000 after losing 3.4% of its value in the last 24 hours. The total cryptocurrency market cap has now dropped to $2.33 trillion after hitting the $2.6 trillion mark last week.
