ChainCatcher reports that cryptocurrency trading platform QCP Capital noted that Bitcoin is currently trading in a narrow range near $66,000. Tensions in the Middle East over the weekend briefly pushed prices down to a low of $60,000, but they have since returned to the recent trading range. Analysts point out that the initial decline triggered approximately $300 million in long liquidations; however, this deleveraging was relatively mild compared to the disorderly sell-offs earlier this year and in 2025. Macroeconomic factors are also significant, as expectations of prolonged Fed tightening keep the opportunity cost high for non-yielding assets. Stephen Coltman, Head of Macroeconomics at 21Shares, stated that wars have historically been inflationary, driving up commodity prices and widening fiscal deficits, which could complicate prospects for rate cuts even if risk assets initially experience volatility. Amid escalating military conflict in the Middle East and uncertainty surrounding Fed policy, the Crypto Fear & Greed Index stood at 15 on Monday, indicating "extreme fear."
Bitcoin Holds Tight Range Amid Rising War Risks and Delayed Fed Rate Cuts
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Summary
Bitcoin remains confined within a narrow range near $66,000 as key support and resistance levels hold strong. Recent tensions in the Middle East briefly pushed prices down to $60,000, triggering approximately $300 million in long liquidations. Stephen Coltman of 21Shares noted that wars typically increase inflation and budget deficits, potentially delaying Fed rate cuts. Amid geopolitical risks and policy uncertainty, the Crypto Fear & Greed Index dropped to 15, indicating 'extreme fear.' Investors practicing value investing in crypto are closely monitoring how these factors influence Bitcoin’s long-term price movement.
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