Major volatility in the crypto market

Bitcoin prices have begun to fluctuate again during a period of sustained tension between the US and Iran. In particular, uncertainties regarding the fate of the two-week ceasefire and the outcome of the talks expected to take place this weekend are being closely monitored by the markets.

CRYPTO MARKET AFFECTED BY US-IRAN TENSION

As financial analysts have pointed out, while restrictions in the Strait of Hormuz continue, the tension in the region has caused volatility in cryptocurrencies. Marex analysts assessed the process as follows: “The ceasefire is fragile, the Strait of Hormuz is still restricted, and everyone is focused on the US-Iran talks.”

On the other hand, Iran's restriction of maritime traffic in the Strait of Hormuz, citing Israel's attacks on Lebanon, is also causing concern for global trade. With the intervention of US President Donald Trump, Israeli Prime Minister Benjamin Netanyahu has agreed to initiate a dialogue with Lebanon.

BITCOIN CONTINUES TO MOVE IN A NARROW BAND

Bitcoin tested its highest level in three weeks at $73,067 at the beginning of the week. However, it soon saw a 0.3 percent decline and pulled back to $72,157.28. Analysts point out that the cryptocurrency has not been able to take a permanent position above $73,000 and will therefore continue to trade in a narrow price band.

According to the assessment published by Marex, it is stated that “unless it moves permanently above $73,000, bitcoin will continue to trade in a narrow band.” This volatility in the markets has focused investors and global financial circles on the critical talks to be held this weekend.

News Source: 12punto