Bitcoin rose 6% on Monday, surpassing the $70,000 level and leading a market-wide rally that pushed Ethereum, BNB, and XRP higher.
Gains came despite intensifying tensions between the US and Iran.
In a CNN interview this morning, Trump suggested that Washington has yet to unleash its full campaign against Iranian targets.
The price of Bitcoin briefly fell to $63,000 on Saturday following reports of US-Israeli military action against Iran. By Sunday, sentiment shifted after confirmation of Iran’s supreme leader’s death, and Bitcoin rallied above $67,000.
The crypto asset was trading at $69,200 at press time, up 3.5% in the past 24 hours, per TradingView.
Over the same period, Ether climbed 2% to $2,000, BNB gained about 3% to $649, and XRP rose 1.5% to $1.4. Among the top 100 crypto assets, NEAR and MORPHO led the advance, each posting double-digit percentage gains.
The total crypto market capitalization surged 4% to $2.4 trillion.
Discussing the geopolitical backdrop, BitMEX co-founder Arthur Hayes suggested that prolonged US military engagement could increase the likelihood of the Fed easing, which he believes would be supportive of higher Bitcoin prices.
“The longer Trump engages in the extremely costly activity of Iranian nation-building, the higher the likelihood the Fed lowers the price and increases the quantity of money,” Hayes wrote in a Monday blog post.
The veteran trader pointed to historical precedent, noting that the central bank eased monetary conditions following major US military engagements in the Middle East dating back to the 1990 Gulf War.
However, Hayes cautioned that the prudent strategy is to “wait and see,” advising investors to deploy capital only after the Fed cuts rates or expands liquidity to support war-related fiscal pressures.
The Fed’s response will ultimately hinge on inflation dynamics, oil prices, and overall financial stability. If oil prices surge and inflation reaccelerates, policymakers could face constraints in easing policy despite geopolitical turmoil.
Source: https://cryptobriefing.com/bitcoin-approaches-70k-trade-xrp-ether/