Bitcoin Driven Downward by Economic Fears

Bitcoin (BTC) has dropped below $64K this morning as the week opens and global economic fears escalate. The previously bullish coin has reversed course and could dip even further.

As Monday’s trading starts, Bitcoin is sitting at $63,691 (BTC/USD), down 2.98% over the last 24 hours. A sharp decline started on Sunday evening as fear over the upcoming Federal Reserve statements this week. There could be another interest rate cut coming later this year. Most signs point to November, and that has investors worried, especially this week as the FOMC chairmen Bowman and Powell will be speaking soon.

They may give some indication of whether there will be a new rate cut in November and will likely speak on the current state of inflation and how the interest rate cut from earlier this month has affected the economy. Bitcoin has benefitted from the previous rate cut, going bullish for a while and passing $66K just a few days ago. That was the highest Bitcoin has reached since late in August.

Escalating Middle East Action Hurts Bitcoin’s Price

Military action in Israel and Palestine is heating up with the assassination of Hezbollah leader Hassan Nasrallah by Israeli forces. Air strikes have also hit the Lebanese capital city of Beirut.  

There is concern that these attacks have escalated the situation in the Middle East and will lead to retaliation by Hezbollah and Palestinian forces on Israeli territories. The fighting has continued for months, sparked by attacks by Palestinians on Israeli lands as the Palestinians seek to push Israelites out of areas they currently occupy.

The cryptocurrency market has responded to the recent increase in attacks by plummeting, with a sharp drop from Bitcoin causing concern for investors. In recent weeks, Bitcoin has been steadily climbing, but much of that progress may be lost now. If the fighting in the Middle East continues at this escalated level, then that could mean a retreat for crypto prices.