Latest Articles

How much gold is deducted while selling?

Selling gold can be a lucrative endeavor, whether you're looking to cash in on investment holdings, liquidate jewelry, or divest assets. However, it's essential...
HomeCryptoBitcoin Price Weakens to $62k Amid Rate Fears and Iran-Israel Tensions
Advertisements

Bitcoin Price Weakens to $62k Amid Rate Fears and Iran-Israel Tensions

The price of Bitcoin experienced a decline on Tuesday, reflecting a fragile risk appetite amidst concerns over higher U.S. interest rates and ongoing geopolitical tensions in the Middle East.

Advertisements

With the dollar reaching a five-month high this week, the broader cryptocurrency market felt pressure as robust retail sales and inflation data led traders to reconsider expectations of early U.S. interest rate cuts.

Advertisements

Bitcoin witnessed a 3.6% drop in the past 24 hours, reaching $62,555.0 by 01:05 ET (05:05 GMT). Traders predominantly leaned towards traditional safe havens like the dollar and gold amidst this environment.

Advertisements

Approval of Hong Kong Crypto ETFs Offers Limited Boost

Despite Hong Kong regulators approving spot crypto exchange-traded funds on Monday, weak risk appetite overshadowed this development. While this move provides Hong Kong and Chinese investors with exposure to crypto markets, it comes after cryptocurrencies faced restrictions in mainland China in 2021 due to concerns regarding gambling and market manipulation.

Although three ETF providers received approval for these products, they are yet to be launched. The impact of Hong Kong ETFs on Bitcoin’s rally remains uncertain, especially considering that enthusiasm in U.S. markets has slowed following the approval of spot U.S. ETFs earlier this year.

Broader Crypto Prices Fall Amidst Outflows and Geopolitical Tensions

On Tuesday, broader cryptocurrency prices experienced a decline as risk appetite remained subdued amidst tensions between Iran and Israel, alongside concerns over sustained higher U.S. interest rates.

Ethereum fell by 2.9% to $3,047.26, while XRP and Solana registered losses of 2.1% and 9.8% respectively.

Over the weekend, cryptocurrency prices faced a flash crash following an Iranian strike against Israel, although they recovered ground after reports indicated minimal damage from the attack. However, recent reports suggest that Israel is contemplating retaliation, contributing to the ongoing risk environment.

The dollar’s surge to over five-month highs following hotter-than-expected U.S. retail sales data, coupled with anticipation of an upcoming speech by Fed Chair Jerome Powell, further heightened trader apprehension towards speculative assets like cryptocurrencies.

Data from digital asset manager CoinShares revealed on Monday that crypto investment products witnessed outflows over the past week, underscoring the cautious sentiment prevailing in the market.

Advertisements
Advertisements