Bitcoin Retreats to $105K as Israel-Iran Conflict and Fed Meeting Dominate Market Focus
Bitcoin dropped on Tuesday after its previous session gains, falling back to about $105,000. Earlier news suggested that Iran was pushing for a ceasefire in its conflict with Israel, which had helped lift prices, but optimism has faded amid ongoing tensions in the region.
Despite earlier gains, optimism in the crypto market remains weak while geopolitical issues in the Middle East continue with little sign of a easing. Investors are cautious ahead of an upcoming Federal Reserve meeting, further curbing risk appetite.
Market sentiment was already jittery after U.S. President Donald Trump issued a severe warning to Iran, and as clashes between Tehran and Jerusalem persist. Moreover, the crypto market showed only a muted response to the Bank of Japan’s decision to keep interest rates unchanged, noting that bond tapering is only expected to slow from next year.
Bitcoin ended up down 1.6% at $105,430 by 09:45 ET (13:45 GMT). While it managed to post some gains this week, it remains confined within a trading range observed throughout most of June.
Iran-Israel Uncertainty Remains, U.S. Involvement Under Watch
Bitcoin continues to trade within a narrow range as the ongoing Iran-Israel dispute weighs heavily on risk assets. The conflict has prompted increased uncertainty, especially following calls from Trump for a swift evacuation of Tehran that sparked fears of direct U.S. military involvement. However, the White House has since clarified that America will not engage directly in the conflict.
An Axios report noted that officials from both Iran and the U.S. are attempting to schedule talks on a nuclear deal and a ceasefire later this week, though it is still unclear if discussions will take place. Earlier reports claiming that Iran sought a ceasefire have also been dismissed.
Trump Media Seeks SEC Nod for Bitcoin and Ether ETF
In related news, Trump Media & Technology Group Corp is requesting approval from the SEC to launch an ETF that invests in both Bitcoin and Ether. This filing is the company’s second major ETF application in the past two weeks, following an earlier submission for a spot Bitcoin ETF in June. (No changes were made to the quoted text.)
The proposed Trump Media ETFs join a crowded field of U.S. crypto ETFs that began appearing in early 2024. There is ongoing criticism regarding potential conflicts of interest, as Trump has historically influenced U.S. crypto policy directly.
Bitcoin Financial Firm Fold Secures $250 Million Facility to Expand BTC Holdings
Meanwhile, Bitcoin financial services firm Fold announced that it has secured an equity purchase agreement valued at up to $250 million. This facility offers the Arizona-based company the option, though not the obligation, to issue and sell new shares, subject to regulatory approvals. "The Company is not required to use the facility and controls the timing and amount of any drawdown on the facility, subject to certain restrictions under the facility," Fold said in the release.
Any proceeds from selling shares would mostly be used to boost Fold’s Bitcoin holdings, which currently stand at 1,490 BTC. The facility was arranged through Cohen & Company Capital Markets, part of J.V.B. Financial Group, LLC.
Crypto Market Update: Prices Fall Amid Fed Concerns
Overall, crypto prices have mostly declined today as investors become increasingly cautious ahead of the Fed meeting. The Federal Reserve is expected to keep interest rates unchanged, and all eyes are on Chair Jerome Powell for further hints on potential rate cuts later this year.