Bitcoin (BTC) faced a crucial test as it retested the $60K mark amidst escalating tensions in the Middle East over the weekend. This price level has served as a critical support for BTC, having bounced off it multiple times since March, making it a key psychological level for traders. However, Peter Schiff warned that a drop below $60K could spell trouble not only for Bitcoin but also for prominent holders like MicroStrategy.
While BTC managed to rebound to $65K following tentative reports of de-escalation in the Middle East, market watchers remained cautious about the situation. Quinn Thompson highlighted the risks of banking solely on geopolitical events or leveraged responses, advising against making long-term crypto decisions based on these factors alone. On the other hand, Mike Novogratz expressed confidence in BTC’s ability to rally post-crash, emphasizing its resilience in the face of conflict-induced uncertainty.
In a related development, a VanEck analyst noted a surge in Chinese investors accumulating gold, attributing it to a desire for stable assets amidst market volatility. With Hong Kong recently approving Bitcoin ETFs, the analyst suggested a potential bullish trajectory for BTC, hinting at a possible surge similar to that seen in gold. This leaves the BTC price at a crossroads, poised to react to either the approval of Hong Kong ETFs or ongoing geopolitical tensions in the short term.
