- Bitcoin approached $66,000 at Friday’s Wall Street open, facing its potential sixth consecutive monthly loss.
- Geopolitical tension spiked as the Strait of Hormuz closure by Iran caused stress across risk assets and the US bond market.
- Analysts warn US inflation trends are “objectively unsustainable,” shifting market expectations from rate cuts to a potential Fed pause or hike.
- Bitcoin’s technical outlook turned bearish with $70,000 established as a key resistance level, with traders eyeing a drop toward $64,000.
Bitcoin neared the $66,000 mark as U.S. markets opened on Friday, concurrently facing its sixth straight month of losses according to data from CoinGlass. Global oil supply concerns, driven by Iran closing the Strait of Hormuz, created pronounced weakness across stocks and other risk assets.
Consequently, this geopolitical squeeze wreaked havoc in the U.S. bond market, with the 10-year Treasury note hitting its highest levels since the conflict began. Trading resource The Kobeissi Letter warned in a post on X that this presented a major problem for the Federal Reserve.
The analysis noted markets have pivoted from discussing rate cuts to potential hikes, with a base case showing a Fed pause for 18 months. It stated, “Inflation expectations have just become an even bigger problem than the labor market. This is objectively unsustainable.”
Meanwhile, Bitcoin traders grew increasingly wary as the price circled three-week lows. Analyzing four-hour charts, the Telegram resource Technical Crypto Analyst predicted a likely continuation toward the $64,000 demand zone.
Trader Daan Crypto Trades echoed the cautious sentiment, stating eyes were on the $65,600 low from the previous week. This outlook was shared in a post on X, noting significant liquidity around that key area.
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