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- Bitcoin fell below $68,000 as geopolitical tensions escalated.
- Gold dropped sharply despite Middle East conflict.
- Fed rate cut expectations shifted to September, pressuring markets.
Bitcoin and gold both turned lower after President Donald Trump said U.S. munitions stockpiles are “virtually unlimited,” suggesting the conflict with Iran could stretch on for weeks. The comments rattled markets already on edge over rising geopolitical risks, inflation concerns, and shifting Federal Reserve expectations.
Trump said the U.S. is well supplied across key weapons systems, arguing wars could be sustained for extended periods if necessary. The remarks reinforced earlier signals that the Iran conflict may not end quickly — a message that appears to have weighed on risk assets and safe havens alike.
Bitcoin Erases Gains, Volatility Climbs
Bitcoin fell roughly 3% to $67,946, after briefly trading above $70,000 earlier in the session. The 24-hour range spanned from $65,303 to $70,044, underscoring heightened volatility.
Trading volume jumped 40%, reflecting increased market participation. On the technical side, BTC remains below its 50-day, 100-day, and 200-day moving averages on the daily chart, while Bollinger Bands are tightening — often a precursor to larger price swings.
Derivatives data shows mixed positioning. According to CoinGlass, total Bitcoin futures open interest rose nearly 4% to $44.48 billion. However, shorter-term open interest declined sharply on both CME Group and Binance, suggesting near-term caution among leveraged traders.
On-chain metrics continue to signal broader bear market conditions, limiting bullish momentum despite periodic rebounds.
Gold Slumps Despite Rising Geopolitical Tensions
Spot gold dropped $100 in just 90 minutes, sliding below $5,300 per ounce. The move came even as tensions in the Middle East intensified.
Several macro factors are pressuring the metal. A stronger U.S. dollar and rising 10-year Treasury yields have reduced gold’s appeal. At the same time, Iran’s declaration that the Strait of Hormuz is closed — and threats toward vessels transiting the corridor — have pushed oil prices higher, raising inflation fears.
Higher inflation expectations could delay Federal Reserve rate cuts. The CME Group FedWatch Tool now shows markets shifting expectations for the next rate cut to September, a development that typically weighs on both Bitcoin and gold.
Also Read: MEXC Launches Crypto Persona Test Event, Users Can Win Up to 10g of Gold
Macro Risks Dominate Market Direction
The combination of extended war rhetoric, oil-driven inflation risks, and delayed rate-cut expectations is creating a challenging environment for both crypto and traditional safe-haven assets.
Unless inflation pressures ease or geopolitical tensions cool, Bitcoin and gold may remain under pressure in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
