Geopolitical risks and macroeconomic uncertainty are creating a risk-averse environment, and Bitcoin and crypto could slide further.
Crypto markets have been under pressure over the past week, mainly due to global instability. On Wednesday, June 18, the overall crypto market dropped 1.06% to $3.25 trillion, with Bitcoin (BTC) falling to a daily low of $103,396, down 5% over the last seven days.
Altcoins led the decline, with Ethereum (ETH) reaching a daily low of $2,456 and posting a 10% drop over the same period. Escalating geopolitical tensions, along with concerns over macroeconomic policy, are weighing heavily on risk assets.
Over the past few days, crypto prices have largely reacted to Israel’s war with Iran, with signs of escalation fueling further declines. As of June 18, there were still no indications that the conflict could be resolved quickly. Also, signs of further escalation emerged as President Donald Trump refused to rule out direct military involvement.
Meanwhile, investors are closely watching the Federal Reserve’s upcoming decision on interest rates, also set for June 18. According to Arthur Aziziov, Founder and Investor at B2 Ventures, this decision could offer some much-needed positive news for Bitcoin.
If Bitcoin drops, crypto markets will be hit hard
Aziziov notes that there have been very few positive developments globally. This has weighed on sentiment and risks pushing Bitcoin even lower, likely triggering a broader decline across stablecoins.
“If no positive sentiment emerges in the near future, Bitcoin could very well retreat into the $90,000-$84,000 range. On the other hand, if a positive backdrop does appear — particularly if the Fed signals a rate cut — then Bitcoin is likely to reach $128,000 by the end of the year,” Arthur Aziziov, B2 Ventures.
Key levels to watch, according to Aziziov, are $112,000 and $100,500, currently the most important resistance and support levels. Any move beyond these will likely trigger either a major rally or a collapse.
Indeed, as noted in thisethdaily.net analysis, there is a likelihood that Bitcoin could fall below $100,000.