As the US-Iran war continues to escalate, Bitcoin is feeling the heat again. Amid rising uncertainty, analysts warn the pioneer cryptocurrency could see massive declines, possibly dropping to a low of $10,000.

Analysts Predict Bitcoin Crash to $10K

In a critical analysis on CryptoQuant, XWIN Research Japan projected a massive 80% fall in Bitcoin. If this projection comes true, BTC will continue its current bearish trend until it reaches a severe low of $10,000. His prediction read,

Notably, this projection comes on the heels of Bitcoin’s steep fall on Thursday after US President Donald Trump’s speech. During the speech, Trump stated that the US-Iran war would escalate in the coming two to three weeks. While many hoped for a de-escalation, Trump asserted that the US would hit Iran “extremely hard” in the coming weeks.

In addition to XWIN, Bloomberg Strategist Mike McGlone also reiterated his long-standing bearish view on BTC. He stated that the coin could eventually fall back to around $10,000. He also added that $10,000 has been one of Bitcoin’s most heavily traded levels since futures began in 2017. This suggests that it is a key point where the market tends to stabilize.

Trump’s Speech on US-Iran War Pushes Bitcoin Down

While Bitcoin hovered around the $69k level before the speech, it swiftly plunged to $67k after it. Now, the BTC price is at $67,098, up 0.65% in a day. However, it is still down by 1.66% and 3.49% in a week and a month, respectively.

Investors also reacted to the speech by selling off assets. The S&P 500 fell 0.23%, the Dow dropped 0.39%, and in Asia, South Korea’s KOSPI fell 4.2%. Oil prices surged 11.4% to $111 a barrel, and the U.S. dollar strengthened.

According to the analyst, these developments are negative for Bitcoin. Higher oil prices raise inflation expectations, and a stronger dollar tightens global liquidity. Both these factors typically push investors away from riskier assets like cryptocurrency. The analyst added,

Today, BTC is witnessing renewed pressure as geopolitical tensions rise. The United Nations Security Council blocked an Arab-backed plan to use force to reopen the Strait of Hormuz. Russia, China, and France opposed the resolution, increasing uncertainty in the markets.

Source: https://coingape.com/analyst-warns-bitcoin-could-crash-to-10k-amid-us-iran-war/

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