Why Bitcoin Price May Fall Below $60000?

Bitcoin price witnessed a much-needed recovery to $70,000 amid FOMO related to ‘Uptober’ rally. However, the positive sentiment among bulls built after breakouts on technical charts, US Fed rate cuts, and Donald Trump’s re-election odds has now faded amid the latest concerns.

Bitcoin fell to hit a 24-hour low of 65,521 as Israel carried out retaliatory attacks against Iran and WSJ claimed the US DOJ is investigating USDT stablecoin Tether.

Why Bitcoin Price Risks Slipping Back to $60,000?

Market Sentiments Faltered Amid Rising Geopolitical Risks

Israel conducted precise and targeted strikes against military targets in Iran. With over 100 aircraft involved, the strike was conducted in response to attacks by the Iranian regime against Israel and its citizens in recent months.

“I can now confirm that we have concluded the Israeli response to Iran’s attacks against Israel. We conducted targeted and precise strikes on military targets in Iran — thwarting immediate threats to the State of Israel,” said IDF Spokesperson RAdm. Daniel Hagari.

“I can now confirm that we have concluded the Israeli response to Iran’s attacks against Israel. We conducted targeted and precise strikes on military targets in Iran — thwarting immediate threats to the State of Israel.”

Watch IDF Spokesperson RAdm. Daniel Hagari talk about the… pic.twitter.com/1OOss3etpV

— Israel Defense Forces (@IDF) October 26, 2024

The world condemns Israel’s operation in Iran and calls for restraint and a ceasefire. The US government has pushed for ending the war before the elections. US Secretary of State Antony Blinken tried to get Prime Minister Benjamin Netanyahu of Israel to envision a plan to end the war.

Meanwhile, Donald Trump has vouched to end the Russia-Ukraine war. Putin welcomed the remarks during the BRICS Summit, stating “He’s being sincere.” Trump has taken a spectacular lead to Democratic presidential candidate Kamala Harris in prediction markets.

Is Tether the Next Black Swan Event?

The WSJ reported that the US government is allegedly investigating Tether for possible violations of sanctions and anti-money laundering rules. Also, the US DOJ to look into whether third parties have used USDT to fund illegal activities such as the drug trade, terrorism, hacking, and money laundering.

Tether CEO Paolo Ardoino responded to the report and claimed there is no indication that the crypto firm is under investigation. However, Bitcoin price and the broader crypto market crashed as USDT lost peg to the US dollar.

Ripple CEO Brad Garlinghouse earlier predicted USDT-issuer Tether as the next Black Swan event. He believed the US government can continue to attack crypto and Tether is the only one that’s going to be an interesting one to watch. Moreover, he doesn’t think there’s a risk of quantum computing to the crypto market at large.

Options Traders Do Not See Bitcoin Price Hitting $100K

While the derivatives market has supported the Bitcoin price and crypto market rally recently. The $100K BTC price prediction by notable people and companies does not fit with options traders.

BTC options trading on Deribit currently suggests a 9.58% chance of prices rising above $100,000 by December 27 options expiry. At the time of writing, Bitcoin options worth $5.80 billion are set to expire, with a max pain point at $61,000. The max pain can change based on market conditions.

Source: Deribit

Also, total BTC futures OI dropped nearly 3% in the last 24 hours. It fell to $37.98 billion from an all-time high of $40 billion. It is now dropping for the broader crypto market amid the latest concerns near US elections.

BTC Price Needs More Time to Hit New ATH

Source: TradingView

BTC price currently trades at $67,035 after hitting a high of $65,521. Furthermore, the trading volume has increased by 30% as traders made adjustments after the dip, but the overall sentiment among traders has remained bullish on further breakout due to other bullish technical chart patterns.

However, traders must keep an eye as any potential downfall can trigger the Bitcoin price below $64,000. Also, further market movements amid elections can slide BTC to $60,000.

#Bitcoin whales recently cashed in over $1.4 billion in profits! pic.twitter.com/M68NPVfJi6

— Ali (@ali_charts) October 26, 2024

US dollar index (DXY) turns volatile and moves above 104 after recent macroeconomic data. Moreover, the US 10-year Treasury yield drops slightly to 4.242%, a sudden jump this week. Notably, investors and traders would take money out of the market as Treasury yield rises. Notably, Bitcoin price moves in the opposite direction to DXY and Treasury yield. Traders may await for DXY and Treasury yield to stabilize before deciding to invest.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.