Trump says he will sue Wall Street Journal, NewsCorp, over Epstein letter report
- Bitcoin falls away from 110k, below 108k.
- Risk off dominates on fears Israel could attack Iran in the coming days.
- Trump raises trade tariff uncertainty.
- BTC ETFs recover after 2 weeks of net outflows.
Bitcoin Technical Analysis
Bitcoin is easing away from 110k, reached last week, extending losses from yesterday amid risk-off sentiment as the conflict in the Middle East escalates and Trump trade uncertainty rises.
Bitcoin settled below 109k on Wednesday and is extending the pullback, tracking a broader risk-off market sentiment as tensions in the Middle East rise. US officials have been warned that Israel is poised to launch an attack on Iran in the coming days, marking a significant escalation of tensions.
The latest developments have triggered risk-off flows in the market. Bitcoin trades 1.5% lower, Ethereum is down 3%, and Solana has dropped 3.25% at the time of writing. The risk-off mood is also being seen in U.S. stock indices, with futures pointing to a weaker open. Meanwhile, Gold is on the rise, up 0.8% at $3380 indicating strong safe-haven demand.
Bitcoin, cryptocurrencies and risk assets often fall in times of elevated geopolitical tensions. A continued escalation of the situation in the Middle East could pull BTC lower.
US Trade Uncertainty Returns
Adding to the risk-off mood, Trump is back antagonising the markets. The market barely reacted to news that the US and China agreed to a trade deal yesterday - details have been scarce. The deal appears to put the two economic powers back to where they were following the Geneva agreement. Any optimism surrounding the deal was short-lived, as President Trump warned that trading partners would be notified of their reciprocal tariff rates, with letters going out in the next week or two.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
The news that Trump is looking to impose unilateral tariffs on trading partners quickly brought attention back to the high levels of uncertainty surrounding the administration’s trade policies, rattling the markets. With the possibility of July 9 tariff hikes still looming, investors will remain wary, which could result in more bearish price action, preventing Bitcoin or US stock indices from reaching record highs, for now.
BTC ETF Demand Remains Strong
After record weakness with net outflows over the past two weeks, institutional demand has picked up again this week. BTC ETFs have seen three straight days of inflows this week, putting weekly net inflows at $981 million. Strong, persistent BTC ETF demand could support the BTC price, limiting losses.
Bitcoin Technical Analysis
BTC’s recovery from the 50 SMA ran into resistance at 110.5k, failing to retest its ATH of 111.9k. The price is falling lower towards 106.6k the 20 SMA. The RSI is pointing lower in a sharp slowdown in momentum.
Sellers would need to take out 106.6k to expose the 50 SMA at 103k. Below 100k, the psychological level comes into play. A break below here creates a lower low, changing the structure of the chart.
Should buyers successfully defend the 20 SMA, bulls will need a rise above 110k and 111.9k to extend towards fresh record highs. With blue skies above, 120k is the next logical target.
Disclaimer: The content provided here is for informational purposes only and is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results. The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.
Which stock should you buy in your very next trade?
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.
In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.
With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.
