In the last day, Bitcoin‘s price climbed to $67,700 but then dropped by over a thousand dollars, teetering on the edge of more significant losses. The weekend offered a chance for market gains, yet Bitcoin struggles to keep its earnings. While bulls were expected to gain momentum following the latest inflation data, the market’s direction remains unclear.
Bitcoin’s Price Drop
The release of the Federal Reserve minutes on Wednesday could provide insights into further monetary tightening. Before the April inflation data came out, some members suggested additional rate hikes might be necessary. Despite disappointing PPI data, April’s inflation was positive. Nevertheless, the Fed minutes might reveal critical details about the interest rate trajectory, causing investor apprehension.
Geopolitical Risks Resurface
In other news, the Iranian President’s helicopter crash has sparked fears of an assassination attempt, potentially heightening Iran-Israel tensions. Geopolitical risks have previously negatively impacted risk markets, including cryptocurrencies, as seen in recent weeks.
Investor Considerations
Key Points for Investors
- Closures below $65,500 will pose significant risks for Bitcoin.
- The key region will be closely watched in the coming hours.
- Bitcoin’s price has currently stabilized at $66,000, avoiding a deeper correction for now.
- Bitcoin’s price has managed to recover to $66,320 at the time of writing.
For crypto investors, maintaining positions above critical support levels is crucial. The market remains volatile, and upcoming economic data and geopolitical events will require close monitoring to navigate potential risks effectively.