Bitcoin (BTC) started the week in positive territory, reclaiming $65,000 and extending its gains on Tuesday, crossing $66,000 and reaching an intraday high of $66,923.
However, the flagship cryptocurrency failed to cross $67,000 as another escalation in hostilities between the US and Iran raised oil prices and dampened optimism.
Bitcoin Stumbles After Fresh Geopolitical Headwinds
Bitcoin (BTC) almost breached the $67,000 mark before sellers stepped in and drove prices lower. Price action is still being dictated by three key drivers: US-Iran tensions, the Federal Reserve meeting scheduled for July 28 and 29, and risk appetite. The immediate reason for BTC’s latest downturn is fresh tension between the US and Iran.
The ongoing geopolitical situation has adversely impacted global markets and investor sentiment. Oil prices briefly declined thanks to a fragile truce between the warring nations.
However, the latest round of escalatory actions has pushed prices higher again. US Crude rose nearly 3% to $84.70 per barrel as supply fears, amid the prospect of another closure of the crucial Strait of Hormuz, resurfaced. Rising oil and energy costs could push inflation higher. A report in Reuters also confirmed a damaged tanker near the Strait of Hormuz and warned of delays in Saudi crude shipments. Houthi forces have also issued threats to ships in the area.
Clarity Act Progress And Sustained ETF Inflows Behind Bitcoin Push Above $65,000
Bitcoin (BTC) pushed higher on Tuesday after the Trump Administration reached an agreement on comprehensive federal ethics rules. The rules could also apply to President Donald Trump’s crypto interests, an issue raised repeatedly by Senate Democrats. However, it remains unclear how the restrictions will be imposed. Democratic senators have pushed for tighter restrictions on political crypto dealings, with Senator Elizabeth Warren stating that a bill that does not address the president’s links to the crypto industry would be worthless.
Reports of the agreement also pushed crypto-linked stocks higher, with Coinbase and Circle shares surging nearly 10%.
Meanwhile, spot Bitcoin ETFs extended their inflow streak for a sixth day, recording $203.2 million in inflows on Tuesday, according to Coinglass data. Total inflows over the past six days currently stand at $930.2 million. Additionally, over $223 million was liquidated in 24 hours, of which $181 million were short positions.
Bitcoin Price Action
Bitcoin (BTC) briefly pushed above the upper Bollinger band when it crossed $66,000, indicating substantial buying pressure. However, with sellers dominating around $67,000, the flagship cryptocurrency has lost ground over the past two sessions.
BTC reached an intraday high of $66,923 on Tuesday but failed to cross the resistance at $67,000. As a result, it declined to $66,086 and has extended its decline during the ongoing session, and currently trades around the $65,700 mark.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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