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BTC is at $64,468 and has failed to stay above $70,000 for months. This situation is pushing altcoins to new lows. Amid geopolitical tension, Bitcoin has new reasons to fall, and short-term bullish triggers don’t mean much. Meanwhile, the volatility index has reached its highest level in recent months.
Bitcoin Volatility Index
Bitcoin price volatility began to rise on June 24 and reached levels last seen in early May. This metric, showing how quickly the price fluctuates over a specific period, also results in significant losses in futures trading. According to CoinGlass data, over $250 million was liquidated in the last 24 hours. Positions of 90,000 investors were closed.
The ongoing turmoil between Israel and Hezbollah is fueling this negativity. Rockets fired from Lebanon yesterday increased concerns that the war would spread to a wider area. Similar market conditions occurred when the Russia-Ukraine conflict began, and investors sold to reduce risks.
What Will Happen to Cryptocurrencies?
Iran promised a counterattack, and we will likely see a limited attack after US markets close, as before. However, markets are experiencing losses as if a ground operation is imminent. The US Dollar Index and precious metals like gold are rising. This confirms the loss in risk assets. Gold broke an all-time record in the TRY pair.
What happens to cryptocurrencies will depend on the severity of Iran’s response in the next 48 hours. Despite bold statements signaling an attack, we saw how weak the response was to the killing of Iranian generals. The fact that an attack is awaited until US markets close says a lot.
We will likely see investors waking up to calmer markets on Monday. This is a conclusion that can be drawn from previous experiences and will not be surprising. However, headlines over the weekend about Iran attacking or preparing to attack could also wear down BTC and especially altcoins.
Kamala Harris’s efforts to improve her image on crypto could shape the November elections more in favor of investors. This is the best expected price support in the short term.
