Bitcoin Hits $79K as Oil Prices Fall
Bitcoin climbed above $79,000 following statements from the US President suggesting the end of the Iran conflict. This development pushed crude oil prices lower and altered market expectations for Federal Reserve policy.
Bitcoin rose to $79,000 on Monday. The price gained approximately 3% during the session. This move followed remarks by US President Donald Trump regarding the Iran conflict.
Trump stated that the US is open to a deal with Iran. He predicted oil prices would drop sharply once the military conflict ends. These comments caused a dip in crude oil trading levels.
Oil prices dip on peace signals
US WTI crude oil remained above $100 per barrel. Brent crude traded at $105 per barrel. Markets reacted to Trump's assertion that energy costs would fall soon.
The S&P 500 index fell 0.3% during the session. Investors remained cautious about threats to key oil transit routes. These routes include the Strait of Hormuz and the Bab El-Mandeb Strait.
Fed rate hike odds exceed 90%
The probability of a 25-basis-point rate hike reached 92.7%. This figure is up from 59.4% a week earlier. The Federal Reserve will announce its decision on Wednesday.
QCP Capital noted that high energy costs could constrain the Fed. They argued that the Fed may remain restrictive despite slowing growth. The wording of the Fed's statement is now more critical than the rate decision itself.
Bitcoin reclaims key technical support
Bitcoin closed below its 50-week exponential moving average on Sunday. The price recovered above the $77,430 level on Monday. This line serves as a critical support target for bulls.
Cointelegraph reported that reclaiming this level is vital for a market comeback. Risk assets have already priced in the expected rate hike. Traders now focus on the path signaled by policymakers.
