Bitcoin Continues Decline, Market Eyes Fed and Middle East Risks
Bitcoin weakened again on Monday (May 18th), falling below US$77,000 amid worsening global risk sentiment. According to the latest market data, Bitcoin was trading around US$76,895, with intraday levels ranging from US$76,655 to US$78,514. This decline extended weekend pressure after Bitcoin previously attempted to re-enter the US$80,000 area but failed to maintain momentum.
Pressure on Bitcoin came from a combination of rising global bond yields and surging oil prices. Brent prices reportedly remained around US$110 per barrel, after being boosted by escalating tensions in the Middle East, including a drone incident in the United Arab Emirates and stalled diplomatic efforts regarding Iran. This situation has sparked renewed concerns about global energy inflation.
Rising energy prices have led the market to reassess the potential for the Federal Reserve to maintain high interest rates for longer. When bond yields rise, riskier assets like crypto tend to come under pressure as investors gravitate towards instruments perceived as safer and offering a return. This sentiment also weighed on Ethereum, which weakened to around US$2,117, with a daily decline of around 3%.
In addition to Bitcoin and Ethereum, several altcoins also weakened, following the risk-off mood in global markets. Investors remain cautious ahead of Nvidia's earnings release this week, which could potentially impact sentiment on technology stocks and risk assets. As long as tensions over Iran remain unabated, oil prices remain high, and interest rate expectations remain unchanged, the crypto market has the potential to remain volatile.
Source: Newsmaker.id
