Bitcoin prices have risen to their highest levels in the last few weeks after geopolitical headlines linked to Donald Trump’s election and the Strait of Hormuz tensions.
Bitcoin reached $70271, before dropping to around $69300. The move was a continuation of a trend that caused large-scale liquidations on derivatives markets. Data from Bitcoin Magazine Pro CoinGlass data shows that short sellers accounted for the majority of positions lost, totaling about 255 million dollars.
Trump made several contradictory remarks before making the move. threatened Trump has announced strikes against Iranian infrastructure, while also signaling negotiations that could result in a deal in a single day. Trump said in a Truth Social post that Iran could face serious consequences if they did not open up the Strait of Hormuz. He named bridges and power plants as targets.
Hours later, Trump told Fox News said that Iran has been in discussions and may have a solution near. A report from Axios also reported that US and Iranian officials along with regional mediators are discussing the terms of a 45 day ceasefire which could bring an end to the conflict.
Markets have been on edge due to the mixed messages. Oil prices As traders priced the risks of disruptions in supply due to the closure one of world’s major shipping routes, the price rose to around $112 per barrel. Analysts warn that higher energy prices have increased concerns about inflation. If oil stays at current levels, US consumer price could increase by 3.7%.
Bitcoin prices are in a tight range
The Bitcoin’s price reaction shows its changing role in times of geopolitical tension. This asset has been traded across a broad range between The range between $65,000 and $75,000.
The bitcoin price is still below its previous peak above The price of the cycle at $126,000 is stable in comparison to other cycles.
The market structure also shows a move away from rallies driven by leverage. Analysts claim that this latest movement was driven by steady spot-demand rather than speculation. The recent rise in prices has cleared bearish positions, as $195 million worth of short positions were closed.
The support of institutional investors has been a major factor. US-listed Bitcoin spot exchange-traded fund recorded net inflows of $22.3 million last week. This indicates that asset managers are still interested in Bitcoin despite the macro-uncertainty. This demand is helping to keep prices at the top of their current range.
Both macro-evolutions and technical developments continue to be associated with downside risks. Bitcoin Magazine analyst’s point out that the range of $65,000 to 66,000 is a crucial support area. If the market falls below this level, it could affect sentiment and weaken demand.
Bitcoin is currently trading at $69,454,01.
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Source: bitcoinmagazine.com
