Bitcoin Falls Again, This Week's Rally Begins to Fade
Bitcoin weakened on Thursday (March 26), paring some of its early-week gains as conflicting signals regarding ceasefire talks in the US-Israel war against Iran kept risk appetite under control. Uncertainty also stemmed from the US legislative process, after the latest developments in the Clarity Act crypto regulation bill elicited a mixed response from the industry.
Bitcoin fell 2.5% to $69,159 at 11:10 AM ET (3:10 PM GMT), after briefly touching $71,419 earlier in the session. The decline followed pressure on other risk assets, with Asian stocks and Wall Street futures also declining. At the same time, oil prices rebounded, maintaining market concerns about the risk of an "energy shock" from the Iran conflict and pressuring speculative assets, including cryptocurrencies.
Cryptocurrencies briefly rallied on Wednesday after reports that the US had presented a 15-point ceasefire proposal to Iran. However, the market capped gains after Iran initially rejected the proposal and offered its own 5-point plan. Iranian state media later reported that the country was reviewing the US proposal, but at the same time said it had ruled out direct talks with Washington, leaving the conflict's trajectory unclear.
Other crypto assets also weakened. Ether fell 4.5% to $2,072.98, while XRP fell 3.3% to $1.36. Solana and Cardano fell 4.9% and 5.4%, respectively, while BNB fell 2.7%. Among meme coins, Dogecoin fell 5.4%, while the $TRUMP token fell more than 6%.
The market will be monitoring the consistency of Iranian diplomatic headlines, oil movements and US yields as determinants of risk appetite, as well as developments in the substance and likelihood of passage of the Clarity Act, which could alter perceptions of regulatory risk in the crypto sector.
Source: Newsmaker.id
