Sentiment Recovers, Bitcoin Rebounds
Bitcoin moved slightly around US$64,867 in trading on Monday (July 27). The largest cryptocurrency briefly touched US$65,598, but fell back after hitting a daily low of US$64,416.
Market sentiment improved after the United States and Iran temporarily halted attacks over the weekend. The pause in the conflict raised hopes for diplomacy and encouraged investors to return to riskier assets, although Bitcoin's movement remained limited.
The easing of tensions also pushed Brent oil prices down by more than 5%. Lower energy costs helped ease concerns that inflation would spike again and force central banks to maintain tight interest rates for longer.
The US dollar also weakened by around 0.3% as demand for safe-haven assets declined. A weaker dollar could provide support for Bitcoin and other dollar-denominated assets.
Investors' attention now turns to the Federal Reserve meeting on July 28-29. Markets are pricing in a roughly 33% chance of an interest rate hike, although the Fed is widely expected to hold rates unchanged at the meeting.
Ethereum is currently trading around US$1,624.95. As long as the conflict pause persists, oil continues to weaken, and the Fed doesn't deliver any aggressive surprises, Bitcoin has the potential to retest US$65,500. However, a renewed escalation of the conflict could trigger a new sell-off in the crypto market. (arl)
Source: Newsmaker.id
