On Thursday, Bitcoin’s price dipped to $70,981, marking a 0.5% decline over the past 24 hours but maintaining a weekly increase of 6.1%. This comes as the U.S.-Iran ceasefire, announced just two days prior and responsible for Tuesday’s rally, shows signs of strain. Iranian Parliament Speaker Mohammad Bagher Ghalibaf indicated that three clauses of the ceasefire proposal were violated, though specifics were not provided. Israeli military actions in Lebanon persisted.
The Strait of Hormuz, vital for shipping and central to the ceasefire agreement, remains largely closed with minimal tanker activity despite Iran’s assurance of “coordinated” transit. Brent crude prices rebounded by 2% to approximately $97 after a more than 10% drop on Wednesday, marking its worst single-day fall in six years. This shift signals market concerns over the ceasefire’s sustainability.
Ether experienced a 2.6% decline to $2,180 following its earlier weekly gain of 5.2%. Solana’s SOL fell by 3.1% to $81.96, XRP dropped 3% to $1.33, and dogecoin declined 3.4% to $0.091. BNB remained relatively stable at $600, with a slight decrease of 2.2%.
The MSCI Asia Pacific Index decreased by 0.9%, with two stocks falling for every one that rose after Wednesday’s significant gains driven by ceasefire optimism. S&P 500 and European futures suggest a 0.2% decline, hinting at the end of a four-day global equity winning streak. Treasuries remained steady following an early rally dip due to concerns over rising oil prices fueling inflation.
The Federal Reserve continues to emphasize potential upward pressure on inflation amid weakening labor market conditions, reinforcing expectations for prolonged higher interest rates. Japan’s wage growth reached multi-decade highs, bolstering forecasts for additional rate hikes.
An analyst described the resulting scenario as “uncoordinated tightening” across major economies, compounded by geopolitical instability that hinders stable rate expectation anchors.
For Bitcoin, its recent movement from $67,000 to $72,700 on Tuesday and sustaining levels above $70,000 despite Thursday’s fluctuations marks its most constructive price action since the war began six weeks ago. While the $65,000 to $73,000 range remains intact, Bitcoin is now testing the higher boundary rather than lingering at the lower end.