The new US attacks on Iran and the renewed tension between Washington and Beijing have weakened the risk appetite in global markets. While Bitcoin fell below $64,000 on July 17, futures linked to Asian stock markets and US technology stocks also remained under selling pressure.
Bitcoin fell below the short-term average
According to CryptoAppsy data, Bitcoin price dropped to approximately $63,600 during the day. The largest cryptocurrency is down nearly 1.4 percent from $65,000 a day earlier and is trading below the closely watched 50-day simple moving average in terms of the short-term outlook.
The price falling below the said average is considered one of the technical indicators indicating that the short-term selling pressure on Bitcoin is strengthening.
Sales accelerated in Asian markets
The decline in the crypto market was also accompanied by Asian stocks. Japan’s Nikkei 225 index fell nearly 3 percent, hitting its lowest level in more than a month. Australia’s ASX 200 index fell 0.5 percent and Nasdaq futures fell 0.8 percent. Nasdaq index completed the previous trading day with a loss of over 1.6 percent.
New US attacks on Iran were effective in the sales pressure. Iran’s semi-official Fars News Agency, citing officials in Hormozgan province, reported that five bridges were hit. The maritime traffic control tower in Chabahar Port was also among the targets of the attacks.
Despite increased geopolitical risks, West Texas Intermediate crude oil futures remained flat around $79 per barrel. The oil market has not yet significantly priced in the tension created by the recent attacks on Iran.
Tensions between the USA and China increased again
Another development that increased the pressure on the markets was US President Donald Trump’s statements regarding China. Trump announced that he declassified intelligence documents claiming that China intervened in the 2020 US presidential elections and that records of 220 million US voters were compromised. China’s Embassy in Washington denied the accusations.
China has never interfered in US presidential elections and will not interfere in the future.
InvestingLive Asia Pacific chief currency analyst Eamonn Sheridan noted that the comprehensive accusations made before the meeting between Trump and Chinese President Xi Jinping, planned to be held in September, pose a new risk of tension for the recently stabilized relations.
The toughening rhetoric may complicate the diplomatic process, which will be carried out until September, regardless of the basis of the allegations.
The escalation of the dispute between the USA and China is being watched as a new element that could increase uncertainty in risky assets, including Bitcoin.
