Bitcoin nears $67,000 as markets ignore Iran strikes and tariff risks
Bitcoin is approaching $67,000 alongside resilient US equities, as traders brush off escalating US-Iran military tensions and the threat of new international tariffs.
Bitcoin approached $67,000 on Tuesday, reaching seven-week highs alongside a broad rally in US equities. The cryptocurrency market demonstrated strong upward momentum that showed little sign of stopping. Traders largely brushed off escalating geopolitical conflicts and macroeconomic headwinds.
The risk-on sentiment across crypto and equities defied conditions that traditionally trigger a broader flight to safety. The US-Iran conflict escalated further following reports of strikes on Amazon facilities in Bahrain. Meanwhile, the closure of the Strait of Hormuz pushed WTI crude oil prices to a one-month high, nearing $85 per barrel.
Adding to the turbulence, media reports indicated Trump plans to introduce a new 10% international trade tariff. This would follow 50% measures imposed on Canada earlier this week. Neither the military escalation nor the threat of a trade war has managed to disrupt the upward momentum in risk assets.
Major financial figures are questioning this unwavering resilience. JPMorgan CEO Jamie Dimon warned that markets are currently treating these mounting risks far too lightly. However, market participants largely attributed the sustained upside to expectations that the geopolitical and economic situations will ultimately resolve favorably.
"Markets are pricing in peace," noted Crypto Rover in a post to his 1.6 million followers on X. This optimism extended to traditional equities, with Caleb Franzen of Cubic Analytics expressing strong confidence in the near-term trend of the S&P 500 index. "I reiterate... I have zero fear, concern, or worry with S&P 500 futures looking like this," Franzen told his followers on Monday.
Technical hurdles remain
While some traders anticipate a push toward $70,000, technical analysts warn that the broader bear market is not yet over. Keith Alan, cofounder of Material Indicators, noted that Bitcoin recently formed a "golden cross" between its 21-day and 50-day simple moving averages. Despite this bullish short-term signal, he cautioned that the longer-term downtrend remains intact.
"Bear Markets don't always look like Bear Markets, especially in lower timeframes," Alan wrote in his market analysis. "The macro trend will be challenged if Bitcoin pushes above the 21-Week SMA. Until that happens, the Bear Market remains intact."
To confirm a true macro trend reversal, Bitcoin must reclaim its 21-week simple moving average. That critical threshold currently sits at $69,720, which notably coincides with Bitcoin's 2021 all-time high. In the short term, Alan acknowledged there is no significant resistance until $67,250.
