Bitcoin (BTC) erased losses after Monday’s Wall Street open as markets largely shrugged off the return of the US-Iran war.
Key points:
Bitcoin joins stocks in a muted reaction to the latest US-Iran deterioration and closure of the Strait of Hormuz.
BTC price manages to top 2.5% daily upside despite the lack of resolution.
Analysis warns that Bitcoin market strength is begin driven by Strategy and speculators.
Markets avoid volatility as BTC price stays green
Data from TradingView showed 2.5% daily gains for BTC/USD, which had closed the week below $74,000.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
US stocks saw modest downside as the week began, but the losses remained modest, while oil began retracing an initial move toward $90.
CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView
The repositioning came a day after US President Donald Trump announced a fresh round of negotiations over Iran in Pakistan.
“My Representatives are going to Islamabad, Pakistan — They will be there tomorrow evening, for Negotiations,” he wrote in a post on Truth Social on Sunday.
Trump appeared to dismiss the significance of Iran closing the Strait of Hormuz, calling its announcement “strange.”
Source: Truth Social
Responding, crypto trading company QCP Capital suggested that markets had already readjusted expectations of the war’s outcome and timeline for it.
“Despite the pullback in spot alongside renewed tensions, volatility has stayed notably subdued, hovering near year-to-date lows,” it wrote in its latest “Market Color” update.
“This disconnect between realised risk and implied pricing suggests investors are recalibrating expectations toward a more episodic pattern of escalation: on-and-off disruptions around the Strait, paired with cycles of rhetoric and de-escalation. In effect, markets are beginning to price duration rather than intensity, pointing to a conflict that may be more protracted than initially assumed, but still contained within current bounds.”S&P 500 one-hour chart. Source: Cointelegraph/TradingView
QCP added that even with the US-Iran ceasefire due to officially…
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