Bitcoin (BTC), has suffered a major blow in the past 24 hours. According to CoinGecko’s BTC dataAssets fell as low as $70147 in the early hours of this morning. BTC price fell by 3.7% within the last day and 8% over the past week. It seems that the asset has found support around $70,000. Bitcoins’ price drop comes following another failure of talks between Iran and US. According to reports, the Strait Of Hormuz is now closed. What could possibly happen?
What will happen to Bitcoin after the US-Iran Peace Talks fail?
Conflict between the US and Iran has had a significant impact on global economics. In May, US inflation was above expectations. Bitcoin’s price crashed in the first waves due to high inflation figures. Recent failures in the US-Iran peace talks has rekindled chances for further increases in crude oil prices. Oil prices rising could lead to higher inflation. Investors could move away from risky assets such as Bitcoin and other cryptocurrency.
Federal Reserve may increase or even maintain rates if the possibility of a resurgence in the war is present. Rates that are higher may push more investors to abandon Bitcoin (BTC), and even the larger cryptocurrency markets.
Analysts show that Bitcoin did not perform well during the financial crisis. Mark Cuban, a billionaire investor who has recently sold most of his BTC due to Bitcoin’s decreasing value as a financial hedge. In the next few weeks, more investors could join Cuban.
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The CLARITY Act, if it becomes law could have a positive effect on the price of commodities. This legislation may ease investors’ concerns. This could lead to an increase in confidence on the market. Bitcoin may recover in these circumstances.
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Source: watcher.guru
