The global crypto asset market once again recorded a negative trend on Wednesday's trading, following rising geopolitical tensions between the United States and Iran. Bitcoin, the cryptocurrency with the largest market capitalization, reportedly underwent a correction of more than 3 percent, dropping below US$62,000 during the London trading session.
This sharp decline was triggered by statements from U.S. President Donald Trump indicating the end of a temporary ceasefire with Iran. This situation sparked investor fears regarding the potential escalation of military conflict, directly impacting the risk appetite of global market participants, including other crypto assets such as Ether and Solana, which also weakened.
Caroline Mauron, co-founder of Orbit Markets, explained that the sell-off occurred due to investor fear over the inflationary impact that could be caused by rising energy prices. This situation is considered risky as it might push central banks to maintain or even raise interest rates as an inflation mitigation measure.
Looking at the volatile market conditions, analysts project Bitcoin's support level to be around US$61,500. Nevertheless, price volatility is expected to continue looming over the market in the near future amid ongoing uncertainty regarding geopolitical developments and global macroeconomic dynamics.
