Bitcoin Plunges to $82K Amid Tensions in Iran and Economic Uncertainty
The price of Bitcoin has dropped to around $82,627 on Monday morning as tensions in Iran and cautiousness ahead of key US economic indicators weigh on the market.
Ongoing geopolitical tensions have led to a combination of factors that are pressuring the market. The Nasdaq futures dipped by about 0.7% after President Donald Trump hinted at new attacks against Iran before the upcoming US legislative elections, despite his claims that he hopes for a swift end to the conflict.
The price of oil has reacted to the uncertainty, with WTI contracts rising by around 1% and Brent experiencing similar movement. A further escalation in the conflict could put pressure on energy prices and lead to increased expectations of inflation and interest rates in the US.
This comes after a strong recovery for Bitcoin, which had gained around 42% over the past three months and was outperforming assets such as Nasdaq and gold during that period. However, the recent rally has found resistance in the $85,000 to $86,000 region, with Vikram Subburaj, CEO of Giottus, identifying a relevant support level between $83,800 and $84,000.