Bitcoin’s price hovered around $76,000 on Thursday without making a big jump. While Bitcoin, which has lost value in recent days, has difficulty compensating for its losses in the volatile market environment, the highest oil prices in the last four years and the interest policy of the US Federal Reserve (Fed) have limited the risk appetite of crypto investors.
Fed decision affected the markets
At the June meeting of the Federal Open Market Committee (FOMC), the interest rate was expected to remain constant and the decision was taken in this direction. However, markets observed that Fed Chairman Jerome Powell took a harsher stance compared to previous years. Nic Puckrin, CEO of the Coin Bureau platform, stated that Powell took one of the most hawkish steps in years and that this put significant pressure on the market.
Additionally, a consensus could not be reached among Fed members. While it was noteworthy that four Fed members opposed the interest rate decision for the first time since 1992, the measures to be taken on the effects of inflation became a matter of discussion. According to Puckrin, the Fed’s ‘soft landing’ strategy has also been deviated from.
Nic Puckrin: “Interest rates were kept constant for three consecutive meetings, but now the direction seems to have changed.” made his assessment.
Political tension and oil prices
One of the main reasons for the pressure on Bitcoin’s price is the geopolitical crisis between the USA and Iran, which has flared up again recently. While ongoing tensions increase uncertainty in the market, the record in oil prices is also related to this. The barrel of Brent crude oil exceeded the $120 level for the first time after June 2022.
According to trade analysis platform The Kobeissi Letter, Asia is facing the worst energy crisis in recent years and aviation fuel stocks are rapidly decreasing in Europe. The USA, on the other hand, exports oil at the highest levels in history.
The Kobeissi Letter, “While the United States is exporting record levels of oil, energy concerns are rising in Asia and Europe.” he commented.
US President Donald Trump also criticized Iran’s stance on its nuclear program on social media and reiterated his expectation for a solution to the issue.
Bitcoin’s technical outlook
CryptoAppsy According to data, Bitcoin (BTC) moved around $76,000 against the US dollar, falling 2 percent from the previous day’s peak. On a technical note, short-term indicators still find support at the 21-day simple moving average at $75,500. It was observed that high-volume whale accounts bought on the recent decline, while smaller investors reduced their risk.
Analysis company Material Indicators stated that this movement in the spot market continues to test the short-term support level. Large purchases on the Binance exchange showed that large volume investors turned the decline into an opportunity. On the other hand, small-scale investors acted cautiously by reducing their positions.
Material Indicators, “Will the support level hold?” brought the question to the agenda.
The future course of the market is expected to be determined by the US-Iran tension, the Fed’s interest policy and changes in energy prices. Whether Bitcoin can maintain critical support levels will remain in the focus of investors in the short term.
