Bitcoin, as of October 12th, has seen a drop to $26.5k levels from its recent support at $27.0k. Over the last 24 hours, it’s experienced a 2.0% decline, which deepens when compared to its weekly high of $27,800, marking a 3.5% decrease.
The rising tension between Israel and Hamas has significantly contributed to this downtrend. This conflict casts uncertainty over the global financial landscape, with the cryptocurrency market being particularly susceptible.
However, it’s crucial to note that Bitcoin liquidations aren’t solely attributed to geopolitical unrest. Various determinants, such as Federal Reserve policies and economic indicators, are instrumental in influencing its value.
Bitcoin Farm Amid Israel-Hamas Conflict
As the conflict between Israel and Hamas enters its sixth day, concerns arise about its potential to disrupt oil supplies, particularly if neighbouring countries like Iran become involved. In response to Hamas’ alleged use of social media for donations, Israel’s Lahav 433 cyber unit has frozen crypto accounts associated with Hamas.
The crypto community in Israel has taken proactive steps. The launch of “Crypto Aid Israel” aims to collect donations, accepting a range of cryptocurrencies, including BTC, Ethereum, and stablecoins like USDT and USDC.
Federal Reserve and Interest Rates
The Federal Reserve’s decisions are pivotal for global financial markets. Current speculation about potential rate hikes indicates a trend toward economic prudence. The Bitcoin revival heavily depends on the future path of inflation.
For Bitcoin investors, this poses a challenge. While constant rates may imply economic stability, a negative reaction from traditional markets to the Fed’s decisions might push investors towards Bitcoin, seeking resilience and potential gains.
Economic Indicators and Their Implications
Key economic indicators like employment and inflation metrics are vital in shaping Bitcoin’s valuation. The US job market showed strength by adding 336,000 jobs in September.
A flourishing economy could draw focus away from riskier assets such as Bitcoin, causing conventional investments to appear more attractive. Conversely, rising inflation, driven by volatile energy prices, might enhance Bitcoin’s potential for profit.
Bitcoin Price Prediction and Market Analysis
Despite a promising start to the month, the Israel-Palestine crisis has seemingly shifted momentum in favour of bears. Recent data and events indicate a turbulent Bitcoin to USD rate atmosphere.
The derivative market’s current climate presents a bearish picture for the short term. BTC bulls sustained a $20 million liquidation, signalling potential price tumbling.
It may signify a positive turnaround if Bitcoin liquidations solidify above the $30k psychological barrier. However, caution is advised, especially around the $26k level.