Key highlights:
Renewed hostilities between the United States and Iran have sent Bitcoin and the rest of the cryptocurrency market tumbling. US President Donald Trump stoked further pessimism after declaring that the fragile ceasefire between the two warring nations “is over.”
Bitcoin price threatens to slip below $60K
According to crypto price aggregators, BTC has flashed signs of an extended decline, falling by nearly 2% in the last hour. The leading cryptocurrency, currently trading at just over the $60K mark, is leading a broader sector decline.
ETH, the largest altcoin by market capitalization, slid by 2% in the same window to trade at $1,748. Meanwhile, BNB, XRP, and SOL have logged hourly losses of 2.60%, 3.61%, and 5%, respectively.
Amid the declines, traders are exercising caution with daily transaction volumes screeching to a 10.24% drawdown to settle at $78.74 billion. A bird’s-eye view indicates a 1.79% decline in the global cryptocurrency market capitalization, driven by grim macroeconomic conditions.
The price declines come on the heels of Trump declaring that the ceasefire between the US and Iran is over. Both nations breached the fragile truce by firing airstrikes at each other, with parties blaming each other for firing the first salvo.
“I don’t want to deal with them anymore,” said Trump at a NATO summit in Turkey. “As far as I’m concerned, it’s over.”
In June, the US and Iran signed a 14-page memorandum of understanding (MOU) to extend the ceasefire and bring the six-month conflict to a close. Meanwhile, the ceasefire has been in place since April, with cryptocurrency and stock prices surging at the time of signing.
Amid the skirmishes, oil prices spiked with WTI crude futures climbing by nearly 3% to $72.27. Meanwhile, the Dollar Index maintained its level above $101.00.
US equities get caught in the crossfire
While cryptocurrency prices bled in the wake of renewed hostilities in the Middle East, US equities are showing signs of a drawdown. Both the Nasdaq 100 index futures and the S&P 500 index futures tumbled as much by nearly 2%.
Furthermore, futures on the Dow Jones Industrial Average slid downwards by 424 points on the heels of Trump’s comments in France. Previous comments from Trump sent DELL stock soaring yesterday, but chip stocks continue their downward pressure amid the conflict.
“Markets had become comfortable with the idea that the conflict would gradually fade into the background, but recent developments suggest that assumption may have been premature,” said Daniela Hathorn, market analyst at Capital.com.
Meanwhile, all eyes are on the minutes of the Kevin Warsh’s first FOMC meeting, with pundits noting that overly hawkish language will hurt markets even further.
Source:: Bitcoin Falters After Donald Trump Declares Iran Ceasefire Over, Oil Price Spikes