Bitcoin Under Pressure, Risk-Off Strengthens
Bitcoin weakened again on Monday (July 20th), as investors continued to avoid risky assets due to the escalating conflict between the United States and Iran. Currently, Bitcoin is trading around US$63,903, with intraday levels ranging from US$63,742 to US$65,012.
The pressure on Bitcoin arose as the market returned to a cautious mode. The escalating US-Iranian attacks have strengthened risk-off sentiment, while speculative assets like crypto tend to be less attractive amid heightened geopolitical uncertainty.
Rising oil prices were also a major factor weighing on the crypto market. Brent re-entered the US$90 per barrel area after the US-Iran conflict restricted energy shipments through the Strait of Hormuz, bringing inflation risk back to the forefront of market concerns.
On the interest rate front, the market still expects the Fed to hold rates at its July 29th meeting, with a probability of holding rates around 85.6%. However, the risk of a rate hike has not disappeared, as pressure from energy inflation has led the market to increase the odds of a December rate hike.
Pressure is also visible in other crypto assets. Ethereum is hovering around US$1,624.95, XRP at US$1,059, Solana at US$77.97, Cardano at US$0.1619, BNB at US$564.51, and Dogecoin at around US$0.0716.
As a result, Bitcoin remains at risk of market pressure as long as the Middle East conflict persists, oil prices remain high, and US interest rate expectations strengthen. Technically, the US$63,700 area is the closest support; if it breaks, the pressure could continue, while a rebound would be more convincing if BTC can regain ground above US$65,000.
Source: Newsmaker.id
