The crash of the cryptography market continued on Wednesday morning while investors adopted a feeling of risk in the middle of the current crisis in the Middle East. Bitcoin and most altcoins have withdrawn, the total market capitalization of the industry falling to 3.38 billions of dollars.
The crypto market blocks as the crisis of Iran and Israel increases
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Bitcoin, Altcoins and the stock market collapsed on Tuesday and Wednesday when the concerns about the Middle East have accelerated. Israel and Iran have continued to launch missiles.
More importantly, Donald Trump has sent signals that the United States could be involved in the crisis. In a series of statements, he called Iran to “total surrender” and suggested that the supreme chief, Ayatollah Ali Khamenei, was an easy target. His statement on Khamenei came after he was reported that he had asked Israel not to kill him.
Security analysts believe that the United States could get involved in the current crisis. On the one hand, it is the only country with massive bunker bombs that Israel will have to destroy the deepest sections of the Iranian nuclear program.
The current crisis has sparked a feeling of risk among market players. This explains why the stock market and other risky assets such as cryptography crashed on Tuesday.
The involvement is that a prolonged crisis will disrupt shipping routes, increasing oil prices. This will also cause higher prices for crude oil,, With Brent and West Texas Intermediate (WTI) reaching more than $ 70.
An increase in shipping and energy prices will lead to an increase in inflation, which, in turn, will make it difficult for the federal reserve to reduce short -term interest rates. Remember that the Fed also observes the impact of Donald Trump’s prices.
Is this the end of the Crypto Bull Run?
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There is a good chance that it is not the end of the Bull Run Crypto, because the fundamentals of the industry are solid.
First, there are signs that Bitcoin demand increases. The data shows that the FNB Bitcoin have had entries in the last seven consecutive days, which brings the cumulative total to $ 46.2 billion. The FNB Bitcoin now hold more than $ 128 billion in assets.
The same trend occurs with Ethereum, where its ETF have had entries in the last seven consecutive weeks. These funds now have more than $ 10 billion in assets after having cumulative entries of $ 3.8 billion.
Bitcoin demand continued to increase this year, the strategy buying more than 10,000 pieces last week. It now contains 592,000 pieces, and Michael Saylor expects to continue the trend for a while.
Second, the Bitcoin offer in the exchanges continued to drop this year. Santiment data show that exchanges have approximately 1.1 million parts, compared to more than 1.5 million earlier this year. The offer on the over -the -counter market continued to decrease.
The price of bitcoin has solid technical
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The other reason why this is not the end of the Crypto Bull Run is that the part formed a cup and handle model, a sign of popular continuation. This pattern includes a horizontal level and a rounded bottom and a handle.
Bitcoin now forms the handle section, which will lead to a strong escape increased in the short term. This model has a depth of around 30%, which means that the part will reach around $ 141,685.
BTC is preparing for a great escape
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Meanwhile, the above graph shows that the price of Bitcoin is about to break above the ascending trend line which connects the highest swings since December 17.
A break above this level could lead to a multi-year bull race which could push it to more than $ 200,000, as some analysts predict. This, in turn, will trigger an Altcoin bull race, because these tokens often reflect Bitcoin’s performance.
Read more: Bitcoin Price Prediction: BTC Path at $ 300,000 revealed
