BTC hovers near $81.5K ETF entry point while Trump's Iran remarks weigh on equities
Bitcoin saw losses extend to 3% during the trading session as equity markets weakened following President Donald Trump's statements regarding potential military operations in Iran.
Bitcoin (BTC) maintained its position under the $82,000 mark as Thursday's Wall Street trading session commenced, with headlines concerning potential Iran conflict creating pressure on risk-oriented assets.
Key points:
- Bitcoin sustained daily declines of 3% on Thursday amid falling US equity markets driven by geopolitical uncertainty.
- President Donald Trump of the United States confirmed the possibility of additional military operations targeting Iran, stating that diplomatic talks are not currently underway.
- Technical analysis of BTC pricing identified $84,400 as a near-term resistance level in advance of the Federal Reserve's Oct. 28 meeting regarding interest rate policy.
Equity markets decline following Trump's statement of "not negotiating" with Iran
Information from TradingView indicated that BTC/USD reached a low of $81,256 on the Bitstamp exchange, representing a 2.9% decline for the trading day.
Varied responses to Tesla's quarterly earnings report and capital expenditure announcements merged with a risk-averse market atmosphere triggered by new statements from Trump confirming the US was "not negotiating" with Iranian officials.
"We are going to have something one way or the other that will happen fairly soon. Most people seem to think it's after the election and we'll see what happens," he told reporters, referring to the US midterm elections on Nov. 3.
American equity indices declined during the opening session, with the S&P 500 Index recording a 1.3% drop at the time of writing. The technology-focused Nasdaq Composite Index experienced a 2.3% decrease.
"Tech stocks came under pressure amid renewed AI valuation fears. The rebound in energy prices contributed to the risk-off tone," Ian Lyngen at BMO Capital Markets, told Bloomberg. He said:
Treasuries have emerged as a primary beneficiary as global risk sentiment has come under pressure.
With government bond performance strengthening, the yield on the US 10-year Treasury bond moved toward 5% during the session, declining to its most subdued point since Sept. 23.
Anticipate BTC confined within tight range ahead of Fed decision
Following its climb to approximately $85,000 during the previous trading day, BTC price movement remained concentrated around the average entry price of US spot Bitcoin exchange-traded funds (ETFs) at roughly $81,500.
Analysts at Bitfinex Alpha, the research arm of crypto exchange Bitfinex, on Wednesday forecast BTC/USD trading in a narrow range between $81,300 and $84,400 until the Federal Reserve rate policymakers next meeting on Oct. 28.
"Sustained ETF demand with stable leverage metrics would support a breakout above $84,400, while macro headwinds combined with a close below $81,300 would increase the risk of a move towards the 15 October low at $79,821," the analysts wrote.
Examining extended timeframes, market participants reduced their expectations for a significant price rally by the middle of January 2027, with traders on the Kalshi platform lowering the probability of BTC/USD achieving fresh all-time highs to merely 3%.