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Bitcoin rose slightly on Tuesday, extending gains from the prior session following reports that Iran was seeking a ceasefire in its ongoing conflict with Israel. However, gains in the cryptocurrency markets remained fragile, as the Middle East conflict showed little sign of de-escalation and traders remained cautious ahead of the Federal Reserve’s upcoming meeting.
Bitcoin Price Action and Geopolitical Tensions
Bitcoin rose 0.5% to $107,066.10 by 01:51 ET (05:51 GMT), extending some of the gains made earlier in the week. Despite the uptick, Bitcoin remains rangebound, staying within a trading range observed throughout most of June. The market’s reaction to the Israel-Iran conflict remains muted, with sentiment still pressured by ongoing tensions.
U.S. President Donald Trump’s comments urging an immediate evacuation of Tehran raised concerns that the U.S. could escalate its involvement in the conflict. While the White House later clarified that the U.S. would not directly intervene, the uncertainty surrounding potential U.S. participation continued to weigh on investor sentiment.
An Axios report indicated that Iranian and U.S. officials were seeking talks this week regarding a potential ceasefire and nuclear deal, although there was no certainty whether these talks would take place. Despite this, Iran rejected reports that it was seeking a ceasefire, further complicating the geopolitical landscape.
Crypto Markets Sensitivity to Sentiment Shifts
While worsening geopolitical tensions generally do not have a direct impact on crypto markets, their speculative nature makes them sensitive to sentiment shifts. The Israel-Iran conflict is a key driver of market volatility, and risk appetite remains subdued across the broader financial markets, contributing to the cautious mood in cryptocurrencies.
Trump Media Seeks SEC Approval for Bitcoin, Ether ETF
In corporate news, Trump Media & Technology Group filed for approval with the Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will invest in both Bitcoin and Ether. This filing marks the second major ETF application by Trump Media in recent weeks, following a spot Bitcoin ETF application earlier in June.
Despite the growing interest in crypto ETFs, Trump’s ventures in the space have faced criticism over potential conflicts of interest, given his influence on U.S. crypto policies.
Broader Crypto Market Performance
Broader cryptocurrency prices mostly trended lower on Tuesday, with anticipation of the Fed’s meeting contributing to the risk-off mood. The Fed is widely expected to keep interest rates unchanged, with investors focused on any signals from Federal Reserve Chair Jerome Powell regarding potential rate cuts this year.
- Ether (ETH), the world’s second-largest cryptocurrency, fell 1.1% to $2,579.99.
- XRP rose 2.6% to $2.2370, benefiting from positive price action.
- Cardano (ADA) and Solana (SOL) saw losses of 1.5% to 2%, while Polygon (MATIC) dropped 1.2%.
- Among meme tokens, Dogecoin (DOGE) shed 2%, and $TRUMP lost nearly 4%.
Bitcoin and the broader cryptocurrency market continue to face pressure from the ongoing geopolitical tensions in the Middle East, as well as the anticipation surrounding the Federal Reserve’s upcoming meeting. While Bitcoin has managed some gains this week, the market remains fragile, and risk sentiment is largely dictated by developments in both the Israel-Iran conflict and broader economic conditions. Crypto investors will be closely watching the Fed’s decision and any clues about future rate cuts, which could impact market sentiment in the short term.
