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Bitcoin Erases Losses as Markets Shrug Off US-Iran Tension

Bitcoin recovers despite Iran tensions; muted market warns rally is speculative

[Bitcoin erased losses after Monday’s Wall Street open despite renewed US-Iran tensions][The market reaction was muted, with volatility staying near year-to-date lows][Analysis warns Bitcoin’s recent highs stem from speculative traders and sellers taking profit]

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Bitcoin displayed resilience on Monday, erasing earlier losses after Wall Street opened despite escalating tensions between the US and Iran. The cryptocurrency joined stocks in a muted reaction to the deterioration, even as Iran announced the closure of the Strait of Hormuz. Consequently, BTC/USD showed 2.5% daily gains despite the lack of resolution, according to TradingView.

Meanwhile, US President Donald Trump appeared to dismiss the significance of the Strait’s closure, calling it “strange.” He announced fresh negotiations were scheduled in Islamabad, Pakistan, in a post on Truth Social. However, crypto trading firm QCP Capital suggested markets had already recalibrated expectations toward a more episodic pattern of escalation.

Analyzing short-term BTC price moves, analyst J. A. Maartunn revealed some troubling dynamics for bulls. He suggested recent local highs were simply driven by buying pressure from speculative traders. Consequently, sellers stepped in to take profit, halting the rally and leaving price stuck below key resistance levels.

“The key question: is it enough to push Bitcoin higher? For now, this still looks like a bear market rally,” Maartunn wrote. A strong breakout could quickly shift the trend, however. QCP Capital concluded that the base case remains range-bound volatility rather than a decisive breakout across major asset classes.

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