Middle East deal bolsters cryptocurrencies
Cryptocurrencies rejoice at Iran deal news
The washout low on 5 June finally saw buyers emerge for cryptocurrencies, and last week saw a marked change in sentiment from the relentless selling of the previous month. In this, cryptocurrencies appeared to anticipate a US-Iran deal, rallying all week from their lows, but in truth sentiment was so battered and shorts so triumphant that some rebound was more than likely. With bitcoin defending its $60k level and ether holding the crucial April 2025 lows this rebound may have legs, given the more benign macro environment.
What we’re watching – Fed meeting crucial for cryptocurrencies
Last week it seemed Kevin Warsh was set for a rocky first meeting as Fed chairman, but the slump in oil prices and an Iran deal changes the game for the new head of the world’s most important central bank. He can now go into the meeting arguing that the shock of higher energy costs will continue to fade, bolstering his argument for rate cuts. This provides some much-needed relief for cryptocurrencies, even if an actual rate cut is still an unlikely prospect this year. Despite cryptocurrencies miserable run, prices have yet to reach the bargain valuation levels seen before the big 2018 and 2022 rallies.
Author
Chris Beauchamp has been with IG for four years, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News.
