Key Takeaways
- BTC slid to $64,799 on Thursday, July 23, marking a three-day bottom
- President Trump warned of potential “massive attack” on Iran after Houthi assaults on Saudi shipping
- Brent crude surged past $100 per barrel, igniting inflation concerns
- Probability of a Fed rate increase in July soared from 12% to approximately 40% within seven days
- Market analysts remain divided, with projections ranging from $73K rallies to potential drops under $65K
Bitcoin tumbled beneath the $65,000 threshold on Thursday as escalating geopolitical friction between Washington and Tehran sent shockwaves through global risk markets.
The BTC/USD trading pair touched a three-session low of $64,799 on the Bitstamp exchange, representing a daily decline of 1.52%, per TradingView charts.
The downward pressure emerged following statements from President Donald Trump, who indicated he is weighing a “massive attack” against Iran. These comments followed attacks on Saudi Arabian oil tankers in the Red Sea by Houthi militants aligned with Iran.
In a Truth Social post, Trump expressed being “very disappointed” with the Houthis and issued stern warnings directed at Iran. He mentioned that Israel “would join in two minutes” if requested, while emphasizing “we don’t need anybody.”
White House officials clarified that no definitive military action has been authorized, with two administration sources confirming that no operational orders have been distributed.
Brent crude oil prices breached the $100 per barrel mark, reaching levels not seen since early June. This dramatic increase has intensified concerns regarding potential US inflation acceleration.
Federal Reserve Rate Hike Probability Surges
Mounting inflation anxiety is directly influencing Federal Reserve policy expectations. Data from CME Group’s FedWatch Tool reveals that the likelihood of a 0.25% interest rate increase at the July Federal Open Market Committee meeting skyrocketed from roughly 12% to nearly 40% over a single week.
Market analysis platform The Kobeissi Letter highlighted that US 10-year Treasury yields reached 18-month peaks, describing it as “a sign of fresh economic strain.”
American equity markets also suffered losses. The S&P 500 declined 1.2% while the Nasdaq Composite tumbled 2.2% by the conclusion of Thursday’s New York trading session.
Market Analysts Divided on Bitcoin’s Direction
Cryptocurrency analyst Michaƫl van de Poppe identified the 21-day moving average positioned at $64,073 as the critical support threshold. He suggested that if Bitcoin maintains levels above this point, a rally toward $73,000 becomes feasible, though the $68,000 resistance area presents a significant obstacle.
Crypto trader Jelle maintained an optimistic outlook, stating that price action is “still making progress” and that breaking through local resistance could pave the way toward $70,000.
Meanwhile, analyst Exitpump adopted a more bearish stance, advising his audience: “July rally is coming to end. Close your longs, go short once price breaks below 65K.”
Analyst KillaXBT outlined his medium-term outlook, asserting that he believes the cycle bottom has already formed at $57K. His forecast anticipates BTC will undergo consolidation over the next four to six weeks before pushing toward the $80,000 price range.
https://twitter.com/KillaXBT/status/2080276912471961697?s=20
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