Folks, the crypto rally didn’t last long.
Bitcoin’s climb past $106K earlier today was cut short as news broke that Iran had violated a ceasefire deal with Israel, just hours after it was supposedly brokered by US President Donald Trump. The sudden escalation sent shockwaves through the market, triggering over $500 million in crypto liquidations within the hour.
Long positions were hit the hardest as the market reversed. By press time, Bitcoin had slipped back below $105K, giving up most of its earlier gains.
What triggered the panic?
Israel’s Defense Minister, Israel Katz, announced “intense strikes” on Tehran after accusing Iran of breaking the US-Qatar-mediated truce. The situation escalated rapidly, with the Chief of the General Staff, LTG Eyal Zamir stating.
Iran has denied any ceasefire breach, but its top security council says the nation is fully prepared to retaliate if provoked.
The ceasefire was meant to de-escalate regional tensions. But with missiles now back on the table, global markets are on edge, and crypto is once again acting as a volatility sponge.
With the ceasefire unraveling in real time, traders scrambled. Liquidations soared to $500 million, signaling panic among leveraged long positions. The sudden move has shaken confidence just as Bitcoin was reclaiming bullish territory.
Despite the turbulence, some seasoned traders see opportunity.
Popular analyst Michael van de Poppe believes Bitcoin is still in an upward trend, calling the pullback a healthy retest.
“Bitcoin has a trendswitch. It’s uptrending now, after we’ve had a massive liquidation crash taking place to sub $100K. It broke through $103K and hit the next resistance. Time to be buying the dip…”
For dip buyers, $103K may be the key accumulation zone to watch.
Beyond the battlefield, Trump had more to say – this time targeting the Federal Reserve.
In a pointed post on Truth Social, the president slammed Fed Chair Jerome Powell for holding rates steady at the June FOMC meeting.
“No inflation, great economy – We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus.”
Trump also said if the cuts don’t work out, Powell could hike again but warned Congress to “work this very dumb, hardheaded person over.”
Between rising geopolitical tensions and renewed pressure on the Fed, the crypto market is caught in the middle.
Bitcoin’s recent pullback might just be noise or the start of a bigger shift. Either way, traders now have more than just price charts to worry about.
We’ll keep you updated right here on Coinpedia.
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