 ▲ Bitcoin (BTC), U.S. Dollar (USD) |
Bitcoin (BTC) is facing strong downward pressure, slipping below the $67,000 level as the release of hawkish minutes from the U.S. Federal Reserve coincides with escalating geopolitical tensions between the United States and Iran.
According to financial outlet Insider Muna on Feb. 19 (local time), Bitcoin fell 1.3% from the previous day to around $66,963 as macroeconomic uncertainty and risks stemming from the Middle East hit simultaneously. The January Federal Open Market Committee (FOMC) minutes, which had drawn significant market attention, revealed a far more hawkish stance than expected, driving investors to sharply reduce exposure to risk assets.
In the released minutes, Fed officials expressed deep concern that the pace of disinflation is stalling and indicated that rather than discussing rate cuts, the possibility of additional tightening should remain on the table. With assessments suggesting that upside inflation risks remain substantial, questions are emerging not only about the timing of rate cuts but also about their necessity. The Fed’s commitment to maintaining high interest rates is directly pressuring liquidity in the crypto market and weighing on Bitcoin’s upward momentum.
Rising geopolitical tensions are also acting as a key factor weighing on the market. Reports that U.S. President Donald Trump approved military strikes targeting Iran’s nuclear facilities and mentioned the possibility of the Iranian regime’s collapse have pushed the international situation into extreme uncertainty. As a result, funds are flowing into traditional safe-haven assets such as gold and the U.S. dollar, while significant capital outflows are being observed in risk assets including Bitcoin.
From a technical perspective, Bitcoin is also in a fragile position. After breaking below the key support level of $67,000, it is now testing the next support at $66,000, with analysts warning that a deeper decline could see prices retreat to as low as $62,000. Economists at the Chicago Mercantile Exchange (CME) cautioned that additional policy uncertainty, including confirmation hearings for potential Fed chair candidates James Seyffart and Kevin Warsh, could further heighten market volatility.
For the time being, Bitcoin is likely to trade within a narrow range or experience further declines without a clear rebound catalyst. Market attention is now focused on the release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, as well as developments in military tensions in the Middle East. Unless uncertainties surrounding macroeconomic policy and geopolitical risks are resolved, the wait-and-see stance in the cryptocurrency market is expected to persist.
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