Bitcoin and gold extend fall ahead of US-Iran nuclear deal talks in Geneva. US stock futures also dropped sharply on Tuesday as U.S. President Donald Trump issued a stark warning to Iran ahead of the second round of nuclear talks in Geneva.
US President Donald Trump Warns Iran Ahead of Nuclear Talks
Speaking to reporters aboard Air Force One, Trump stated he will be involved “indirectly” in US-Iran nuclear deal talks in Geneva on February 17. He is confident about the prospects of making a deal and said “I don’t think they want the consequences of not making a deal.”
Tensions are soaring ahead of the talks, with the U.S. deploying a second aircraft carrier to the Middle East. Iran also holds military drills in the Strait of Hormuz after repeated threats of military action amid a significant U.S. military buildup in the region.
Oman’s FM Badr Al Busaidi met Iran’s FM Abbas Araghchi in Geneva to prepare for Oman-mediated second round of indirect US-Iran talks. Both affirmed the need to advance understanding toward a mutually satisfactory agreement.
Bitcoin and Gold Under Pressure?
Bitcoin and gold continue to slide ahead of high-stakes US-Iran nuclear talks. At the time of writing, gold prices dropped below $4,950 after Donald Trump’s warning to Iran. This marks the second consecutive session of declines amid a stronger U.S. dollar.
However, positive developments related to the nuclear deal could boost risk-on sentiment. Bullish bets on gold are surging despite a historic correction.
After COMEX gold futures suffered their largest one-day drop in decades, traders began accumulating December $15,000-$20,000 call spreads. The position has since grown to almost 11,000 contracts, despite gold prices consolidating near $5,000.
Moreover, lower-than-expected US CPI inflation data released last Friday boosted expectations of further monetary policy easing by the Federal Reserve this year. CME FedWatch Tool shows traders are pricing in two Fed rate cuts, with 52% odds in June.
Meanwhile, Bitcoin is holding near $68K amid crypto market volatility, with minor fluctuations amid geopolitical tensions. Earlier, Bitcoin and precious metals faced sell-offs during heightened risk-off sentiment tied to the US-Iran situation, as investors sought liquidity rather than traditional safe havens.
Potential Bitcoin Bottom Forming: Matrixport
Bitcoin is correlating with tech stocks during uncertainty and could see further downside if talks fail without immediate escalation. The Crypto Fear & Greed Index has tumbled to extreme fear levels, reflecting Bitcoin bear market sentiment.
However, Matrixport claims its proprietary Greed & Fear Index suggests that potential durable bottoms form when the 21-day moving average drops below zero and reverses higher. This transition signals that selling pressure is waning and market conditions are beginning to stabilize.
Matrixport said “While prices could still decline further in the near term, historically these deeply negative sentiment readings have offered highly attractive. Given the cyclical relationship between sentiment and Bitcoin price action.”
Bitcoin vs Greed & Fear Sentiment Index. Source: MatrixportBTC price is trading sideways near $68,200, down almost 0.25% over the past 24 hours. The 24-hour high and low are $70,067 and $67,301, respectively. Trading volume remains low as traders caution ahead of US-Iran talks.
Source: https://coingape.com/will-bitcoin-gold-fall-today-as-trump-issues-warning-to-iran-before-key-nuclear-talks/
