Bitcoin Tumbles Amid Escalating US-Iran Tensions

The Bitcoin price has been under pressure due to escalating US-Iran tensions and increasing Fed rate hike bets. The negative sentiment was triggered by President Trump's comments on a potential deal with Iran, which he said would come after the November elections.

However, hopes for a US-Iran deal returned when Iran sent a proposal to reopen the Strait of Hormuz within seven days under certain conditions. Unfortunately, Trump rejected the proposal and told reporters that he expected to resume bombing Iran after the midterms, weighing on the crypto market and dragging Bitcoin lower again.

The focus remains on the Middle East and the Fed, with a breakthrough potentially positive for Bitcoin as aggressive rate hike bets would likely be pared back. A prolonged stalemate or re-escalation, however, will continue to weigh on the cryptocurrency.