The Bitcoin Truce Enigma: Bitfinex Analysts Reveal the Key Factor That Will Determine Bitcoin’s Price! – Two Weeks Are Very Critical!
A two-week ceasefire had been agreed upon between the US and Iran. This news caused Bitcoin ($BTC) to surge above $72,000, while oil prices experienced a sharp decline. However, Israel’s continued attacks on Lebanon cast a shadow over the ceasefire.
Despite the ongoing US-Iran ceasefire uncertainty, Bitcoin remains above $70,000. Analysts believe that oil prices will play a key role in $BTC’s next move.
With Bitcoin surpassing $70,000, Bitfinex analysts indicated that whether the upward trend in $BTC price will be sustainable will depend on oil prices.
Bitfinex analysts stated that if oil prices continue to fall by 15-16%, the Fed may bring forward the timeline for interest rate cuts.
This would be a positive development for risk assets, including Bitcoin, and would support an upward trend.
Analysts also noted that there are approximately $6 billion in leveraged short positions concentrated around $72,000, and that these short positions could rise as a result of increasing expectations of FED interest rate cuts.
In such a scenario, the closing of short positions in Bitcoin could bring the price close to $80,000.
However, Bitfinex analysts added that significant geopolitical uncertainty persists. In this regard, analysts stated that a complete closure of the Strait of Hormuz would cause oil prices to rise again to $120, which would reduce the likelihood of a US Federal Reserve interest rate cut.
Analysts have concluded that the next two weeks could be a turning point for Bitcoin’s direction.
*This is not investment advice.
