Trump warns Iran and pushes Bitcoin lower again

Peter Brandt warned us last week that Bitcoin could still go into decline within a fairly wide trading range, and that is exactly what happened in the last 48 hours after Donald Trump issued a warning to Iran.

Trump reminded Iran that ‘the clock is ticking’ and in this manner sent oil prices higher again, sent stock markets lower, and sent Bitcoin and the altcoins into the doldrums.

Geopolitics

Although a turnaround seemed to have begun for the crypto market (in recent months), it is still geopolitics that determines the economic direction. As US stock markets are trading at all-time highs and Bitcoin had started a rally several months ago, a minor threat from US President Donald Trump was more than enough to send stock markets and crypto downhill again.

Rising inflation, driven mostly by higher energy prices, is also starting to worry investors.

On the crypto market, the ‘fear and greed’ index fell to a level of 28, something we haven’t seen for months. For Bitcoin, there is important support at $76,000. We hope that support line holds if the geopolitical situation deteriorates this week.

At the time of writing, Bitcoin is trading at $76,700.