Bitcoin (BTC) started the week on a high note as the war between the US and Iran, which has been ongoing for weeks, continues.
The cryptocurrency markets saw an upward trend in the early hours of the week. Bitcoin rose by over 3%, reaching approximately $69,200, before subsequently retreating to the $68,800 level. This rise was also reflected in altcoins, with Ethereum (ETH) climbing 4% and exceeding $2,100.
Although BTC started the day higher, US President Donald Trump’s harsh statements against Iran are increasing uncertainty in global markets.
Trump, by stating that Iran’s energy infrastructure could be targeted if the Strait of Hormuz is not reopened, signaled a further escalation of military tensions.
The market shows that despite Trump’s harsh statements, Bitcoin is actually exhibiting an upward trend.
Analysts note that despite the sharp jump in Bitcoin’s price in a short period and the accumulation of approximately $200 million in short positions, Bitcoin continues to remain within its recent battle zone of $65,000 to $73,000.
Although Bitcoin has experienced sharp increases since the war began, it has still failed to break through significant resistance levels, and whether the rally will continue depends on whether a ceasefire agreement is reached between the two countries.
Despite this short-term upward trend, analysts remain cautious about the long-term outlook. Bloomberg Intelligence analyst Mike McGlone warns that if Bitcoin fails to sustainably break above $75,000, it could experience a sharp drop to 2020 levels, specifically $10,000.
Short Purges Increased!
According to data from Bitcoinsistemi.com, $164 million was liquidated in leveraged trading in the last 24 hours. Of this amount, $126.4 million was from short positions and $37.6 million was from long positions.
The fear and greed index was also calculated today with an extreme fear score of 13 out of 100.
Oil Prices Are Rising Along with Bitcoin!
Oil prices continue to rise amid increasing geopolitical risks. Following Trump’s statements, Brent crude oil jumped above $110 per barrel, starting the week with a strong increase.
Brent and US crude oil prices are trading around $110, supported by expectations that the war will not end in the short term.
*This is not investment advice.