The U.S.-Iran ceasefire is set to expire mid-week, raising concerns over renewed tensions in the Strait of Hormuz, which could impact global oil prices and risk assets, including cryptocurrencies. The recent reopening of the Strait initially buoyed oil prices and supported a risk-on sentiment in the crypto market, particularly for Bitcoin. However, with Iran’s military actions against ships and U.S. seizures of Iranian vessels, traders are on alert for potential volatility as the ceasefire deadline approaches.
Bitcoin’s performance is critical this week, with a key technical level to watch at its ETF cost basis of approximately $74,000. A sustained hold above this level could validate the current risk-on rotation seen in ETF inflows, which have turned positive over the last three sessions. Conversely, a drop below this threshold may reignite volatility in the crypto sector, complicating the market’s recovery trajectory.
Market professionals should closely monitor Bitcoin’s price action relative to the $74,000 level, as this will be pivotal for determining the sustainability of the recent bullish sentiment in both crypto and broader risk assets.
Source: coindesk.com