Bitcoin (BTC) erased losses after Monday’s Wall Street open as markets largely shrugged off the return of the US-Iran war.
Key points:
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Bitcoin joins stocks in a muted reaction to the latest US-Iran deterioration and closure of the Strait of Hormuz.
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BTC price manages to top 2.5% daily upside despite the lack of resolution.
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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/TradingViewUS 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/TradingViewThe 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 SocialResponding, 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.
S&P 500 one-hour chart. Source: Cointelegraph/TradingViewQCP added that even with the US-Iran ceasefire due to officially expire within days, that event was unlikely to be definitive.
“The base case, for now, remains one of range-bound volatility, rather than a decisive breakout across major asset classes,” it concluded.
Strategy, speculators under the microscope
Analyzing short-term BTC price moves, J. A. Maartunn, a contributor to onchain analytics platform CryptoQuant, had some bad news for bulls.
Related: BTC price due new highs: Five things to know in Bitcoin this week
Bitcoin’s recent local highs, he suggested, were simply a result of buying pressure from Strategy and speculative traders, with sellers stepping in to take profit, halting the rally.
“Where does that leave price? Not far,” he summarized in an X thread.
BTC/USD chart with STH cost-basis data. Source: J. A. Maartunn/XMaartunn said that BTC/USD remained stuck below “key resistance,” including the cost basis of short-term holders (STHs) near $83,000.
“Long-Term Holders keep accumulating, and Strategy isn’t done yet,” he acknowledged.
BTC/USDT three-day chart. Source: J. A. Maartunn/XThis article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research before making any decisions. Cointelegraph makes no guarantees regarding the accuracy or completeness of the information presented, including forward-looking statements, and will not be liable for any loss or damage arising from reliance on this content.
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