Bitcoin slipped nearly 2% over the past week as renewed tensions between the United States and Iran rattled global financial markets and dampened investor sentiment toward risk assets.
The world’s largest cryptocurrency was trading above $62,800 on Monday, down 1.94% from a week earlier. Bitcoin briefly climbed above $64,250 at the start of trading but reversed course after reports of escalating tensions between Washington and Tehran triggered a broader market sell-off.
Despite recent US military strikes on Iran, Bitcoin had remained close to the $64,000 level last week. However, growing geopolitical uncertainty has renewed pressure on the cryptocurrency market.
Bitcoin has traded within a relatively narrow range in recent weeks. After falling to around $57,800 on July 1, the digital asset rebounded nearly 11% to reach approximately $64,700 before retreating again.
Market analysts said cryptocurrency traders are closely monitoring global developments, particularly oil prices, the strength of the US dollar, and expectations for interest rates, all of which could influence investor appetite for digital assets.
According to market analyst Nagham Hassan, Bitcoin is currently facing pressure from three key factors: heightened geopolitical risks, increased investor interest in artificial intelligence (AI) ventures, and capital flowing into newly listed companies through initial public offerings (IPOs).
Analysts expect market caution to persist until shipping through the Strait of Hormuz returns to normal and a lasting diplomatic agreement reduces regional tensions.
