Key Takeaways
- BTC experienced a 2.1% decline, settling near $62,115 following Trump’s announcement that the US-Iran ceasefire had ended
- Crude oil markets rallied with Brent briefly exceeding $80 per barrel
- Crypto analyst Michaël Van de Poppe identified $61,000 as a critical support threshold
- Federal Reserve meeting minutes revealed internal disagreements regarding interest rate policy, creating headwinds for risky assets
- Bitcoin ETFs in the United States recorded three consecutive days of positive net flows despite market volatility
The leading cryptocurrency by market capitalization experienced a decline exceeding 2% on Wednesday following the breakdown of diplomatic efforts between the United States and Iran, triggering widespread market volatility and a sharp rally in energy commodities.
Bitcoin retreated to approximately $62,115 after reaching levels above $64,600 earlier this week. The downturn accelerated when President Donald Trump, during remarks at the NATO gathering in Ankara, Turkey, declared that the ceasefire agreement had collapsed.
Military action by US forces against Iranian targets occurred Tuesday in response to assaults on three civilian oil vessels operating near the strategically important Strait of Hormuz. Tehran launched retaliatory strikes, prompting Trump to signal further escalation with warnings of additional attacks “hard again tonight.” The Pentagon subsequently verified that more military operations had been executed.
BREAKING: US announces it has hit 90 Iranian military targets in tonight’s strikes on Iran, per CENTCOM.
US strikes targeted Iranian air defense systems, coastal surveillance assets, missile and drone storage sites, naval capabilities, and military logistics infrastructure along… pic.twitter.com/NgFiATDLMH
— The Hormuz Letter (@HormuzLetter) July 9, 2026
According to Trump’s statements, Washington is considering reinstating a naval blockade targeting Iranian maritime facilities. Additionally, the administration canceled a general license that had previously permitted Iranian petroleum production and export activities.
International oil benchmark Brent crude temporarily surpassed the $80 per barrel threshold, marking the highest valuation since June 22. Meanwhile, West Texas Intermediate crude climbed past $75 during the trading session.
Central Bank Policy Compounds Market Uncertainty
The Federal Reserve’s official record from its June 16-17 policy gathering, published Wednesday, revealed significant disagreement among committee members regarding the appropriate trajectory for borrowing costs. Several participants advocated for immediate rate increases.
A majority of committee members highlighted multiple scenarios where inflationary pressures could persist, driven by energy supply disruptions from Middle Eastern conflicts, artificial intelligence-driven consumption growth, and trade tariff implementations. Recent CME FedWatch indicators reflected increasing probability of a rate adjustment at the September policy meeting. Meanwhile, users on the Kalshi prediction marketplace estimated a 55% likelihood of a rate increase occurring sometime in 2026.
Elevated interest rate forecasts typically create downward pressure on higher-risk investment categories such as digital currencies.
Market analyst and cryptocurrency trader Michaël Van de Poppe shared on X that Bitcoin might test support at the $61,000 level. He noted: “This to happen, and then 1-2 days later; we’re in talks again. And the markets reverse.” Previously, he had stated there was “no problem” with Bitcoin’s technical picture provided it maintained levels above $60,000.
I’m expecting to see:
– $BTC‘s low of $61,000 to be tested.
– Oil to run higher.
– $NQ to drop further.This to happen, and then 1-2 days later; we’re in talks again.
And the markets reverse.
It’s the same with this man in Office. https://t.co/o2E21SvzwV
— Michaël van de Poppe (@CryptoMichNL) July 8, 2026
Technical analyst Ted, commenting via X, observed that Bitcoin had developed a hidden bearish divergence pattern on its daily timeframe, cautioning: “$BTC has formed a hidden bearish divergence on the daily timeframe. Bitcoin needs to reclaim $62,500 soon, or else things could get ugly.”
$BTC has formed a hidden bearish divergence on the daily timeframe.
Bitcoin needs to reclaim $62,500 soon, or else things could get ugly. pic.twitter.com/CVFCCyRxGN
— Ted (@TedPillows) July 8, 2026
Investment Product Inflows Remain Constructive
Notwithstanding the price decline, spot Bitcoin exchange-traded funds trading in the United States registered three consecutive sessions of positive net capital inflows through Tuesday, based on data from SoSoValue. This trend helped counteract a previous period of capital outflows and contributed to Bitcoin’s bounce from late-June price troughs.
Analytics from Glassnode indicated that Bitcoin has maintained trading levels beneath its True Market Mean of $76,600 and the short-term holder cost basis of $72,200 for approximately five months. Daily ETF transaction volume ranging from $650 million to $950 million represented roughly 80% below peak levels observed in October 2025.
Glassnode: Bitcoin Remains in Deep Value, but Bottom Confirmation Signals Are Still Missing
According to Glassnode, Bitcoin has traded below the True Market Mean of $76,600 and the short-term holder cost basis of $72,200 for about five months, keeping it in deep value territory… pic.twitter.com/TJBNQUi7uk
— Wu Blockchain (@WuBlockchain) July 8, 2026
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
