The sales wave, which started at the weekend, gained momentum after US Vice President JD Vance left the country without reaching a peace agreement with Iran after his visit to Pakistan. Bitcoin price dropped to $70,500 on Sunday, then started to rise again with the opening of the US markets.
Geopolitical developments shaped the crypto market
Bitcoin rallied to $72,100 during Monday morning trading hours in the United States. It was stated that the news that Iran was considering giving up enriched uranium was effective in the upward movement of the price. This move by Iran was interpreted as a step towards ending the ongoing war in the region.
On the other hand, the US plan to blockade the Strait of Hormuz in the Persian Gulf came into effect on Monday. This step in the region increases security concerns and stress in energy markets.
The Iranian army and the Revolutionary Guard announced that all ports in the region are under threat and that if security is not ensured for everyone, no port will be safe. In the statement broadcast on Iranian state television, it was emphasized that security in the Persian Gulf and the Oman Sea requires an all-out approach.
Quick turnaround in crypto and stock markets
US stock markets also started to recover after the sharp decline in the morning hours, and Nasdaq gained 0.3 percent. The fact that the index initially declined by more than 1 percent revealed how rapidly the risk appetite in the markets can change.
There were notable increases in crypto-focused stocks. While the shares of stablecoin producer Circle increased by 8.3 percent, Coinbase increased by 3.1 percent, and Strategy company, which provides strategy and software services, started trading with an increase of 1.5 percent.
Looking at Bitcoin’s price movement, the recovery process that started at $ 60,000 on February 5 continued in a consolidated manner for 67 days. This period reminds us of the 68-day horizontal course between November 21 and January 28. Following a similar horizontal movement during that period, the price dropped sharply from $90,000 to $60,000 within a week.
Considering the current chart structure, bearish investors in the market continue to act in anticipation of a possible correction. It is predicted that the 200-week moving average at approximately $60,000 will be the reference for a possible pullback.
US Vice President JD Vance is known as one of the young names attracting attention with his rapid rise to American politics. Vance had aimed to mediate a peace agreement during his diplomatic visit to Pakistan, but this expectation did not come true.
The sharp fluctuation in the crypto market appears to be closely linked to global geopolitical risks and developments in the energy market. Especially tensions originating from the Middle East can cause sudden movements in cryptocurrency prices.
While analysts point out the price movement that may occur after a long consolidation in Bitcoin, they point out that the market direction will be critical in the next move.
It is reported that short-term uncertainty continues in the markets and geopolitical developments continue to put pressure on prices.
