The encrypted currency market is experiencing increased volatility, with bitcoin prices falling to $62,000. Bitcoin experienced significant resistance at a price level of $64,000, and CoinGecko data show a 2.1 per cent decline in bitcoin prices over the past 24 hours. The price adjustment for bitcoin took place after the United States launched a new military strike on Iran.
Will bitcoin fall further?
Bitcoin has some support below US$ 62,000, and its prices have fallen three times in the past week to between US$ 61,600 and US$ 61,700. If Bitcoin is unable to maintain the current price level, it may be remitted to $58,000.
Bitcoin prices were affected by the war between the United States and Iraq, and conflicts between the two countries have continued since February this year. Despite hopes for a peace agreement in April and June, no agreement has been reached to date. The new United States attack on Iran has significantly reduced the likelihood of peace between the two countries.
As the conflict in the Middle East escalates again, oil prices rise, which will put additional pressure on the already tense economy. As oil prices rose, so did the market's expectations for the Fed's interest rate hike. High interest rates may lead to further declines in bitcoin prices, and investors tend to reduce risk in a high interest rate environment. A further rise in interest rates could lead to a significant withdrawal of investors from the encrypted currency market.
In the current bear market environment, Bitcoin may face further price declines in the coming days. However, if a ceasefire between the United States and the Islamic Republic of Iran were to be reached, the market could be somewhat eased.