Bitcoin Price & Gold Under Pressure Ahead of US-Iran Nuclear Talks

Key Insights:

• Bitcoin and gold prices dip as geopolitical tensions increase ahead of US-Iran talks.
• Matrixport said Bitcoin could be approaching its bottom, considering extreme fear levels in the market.
• Gold prices plummet despite bullish bets on a possible Fed rate cut, signaling investor caution.

Bitcoin and gold prices have come under pressure with geopolitical tensions building up ahead of critical US-Iran nuclear talks in Geneva.

On Tuesday, US stock futures fell dramatically after US President Donald Trump’s tough warning to Iran. The news has fueled the uncertainty in the markets, affecting all kinds of safe-haven assets, including cryptocurrencies.

Bitcoin price holds steady near $68K. Gold prices continue to slide. Market players closely watch these unfolding events.

US-Iran Nuclear Deal Talks and Market Reactions

Donald Trump stated aboard Air Force One that he will take part indirectly in the ongoing US-Iran nuclear deal talks in Geneva. He emphasized his involvement without direct negotiation. His announcement adds weight to the diplomatic discussions.

Trump seemed optimistic regarding the possibility of an agreement. However, he threatened severe repercussions for Iran in case the negotiations do not work out.

The situation is escalating in the area. The US has sent a second aircraft carrier to the Gulf, and Iran held military exercises in the Strait of Hormuz.

Diplomatic uncertainty, coupled with the accumulation of military force in the region, has caused instability in the markets. Geopolitical risk has weighed on both Bitcoin and gold. As tensions rise, investors grow uneasy. The broader market reflects this mounting anxiety.

The risk-off mood generally increases the demand for safe-haven investments, such as gold. However, in this instance, investors have been demanding liquidity due to increased doubt, dragging both gold and Bitcoin.

Bitcoin Price And Market Volatility With Geopolitical Tensions

Bitcoin price is still subject to fluctuations as geopolitical tensions influence market sentiment. At press time, BTC price is around $67,800, with a slight decline of 1.51% in the last 24 hours.

During this time, Bitcoin’s price ranged from $67,301 to $70,067. This outlined the volatile situation of the market amid the US-Iran situation.

Bitcoin Price Chart | Source: CMC

Investors have triggered repeated sell-offs in Bitcoin and precious metals. They appear to prioritize liquidity over traditional safe-haven assets. This shift underscores changing market sentiment under pressure.

The market’s response to the US-Iran nuclear negotiations shows caution. Investors hold back, waiting for clarity. They avoid committing to risk-on or risk-off positions until talks progress.

Matrixport’s Analysis: Is a Bitcoin Price Bottom Near?

Despite an ongoing downtrend, some analysts, like Matrixport, are suggesting Bitcoin could be reaching a possible bottom.

According to Matrixport’s proprietary Greed & Fear Index, the market sentiment has fallen to extreme fear levels for Bitcoin. This in the past has historically signaled market bottoms.

The index tracks sentiment using Bitcoin’s 21-day moving average. Matrixport noted that when this average dips below zero and then reverses, it often signals a turning point. Such shifts can mark key changes in Bitcoin price action.

Bitcoin Chart | Source: X

Matrixport emphasized that deep negative sentiment readings may signal opportunity. They suggested long-term investors could find attractive entry points. Such conditions often precede meaningful shifts in Bitcoin’s trajectory.

Although further declines remain possible, sentiment and price action show a cyclical link. This pattern suggests Bitcoin price could soon find support. It may begin regaining strength in the near term.

The negative mood can offer an earning opportunity to investors willing to pile up when the market stabilizes.

Gold Prices Fall Amid Market Uncertainty

Gold prices have also been struggling with the uncertainty of the US-Iran nuclear talks. When writing, gold had dropped below $4,950. Also, it was still heading lower into its second consecutive session.

This decline was made in the context of bullish bets on gold, especially following a historic correction in the market.

Lower-than-expected US CPI inflation data released last Friday boosted hopes for monetary easing. The figures strengthened expectations of a dovish Federal Reserve stance. Investors now anticipate further supportive policy moves.

According to the CME FedWatch Tool, there is a 52% chance of two rate cuts by the Fed in June. This has left the market uncertain.

Historically, gold has benefited from the expectations of easing monetary policy. However, gold continues under pressure as investors have no idea of where the market is headed in the long term.

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