Bitcoin Rebounds as War Risk Subsides?...Recovers on Surprise Senate Resolution Passage

▲ Dollar (USD), Bitcoin (BTC)/AI Generated Image

Bitcoin (BTC) has recovered to the $77,300 level following the progress of the US Senate's resolution regarding the Iran war. As concerns about the spread of war eased somewhat, oil prices plummeted below $103 per barrel, and US stock index futures also rose.

According to Coingape on May 20 (local time), the US Senate advanced a war powers resolution, by a vote of 50 to 47, that would prevent President Donald Trump from continuing the war in Iran without congressional approval. Four Republican senators joined the Democrats, and three Republican senators did not participate in the vote.

This vote was procedural in nature. Even if the resolution passes the Senate, it must still pass the Republican-led House of Representatives, and a two-thirds majority in both the Senate and the House is required to override an expected presidential veto by Trump.

Coingape reported that after the Senate vote, Bitcoin rose 1% in a few hours, recovering above $77,300. Bitcoin's 24-hour low and high were recorded at $76,082 and $77,325, respectively. However, 24-hour trading volume decreased by 31%, indicating increased caution among market participants ahead of the release of the FOMC minutes.

A cautious trend continued in the derivatives market. According to Coinglass data, Bitcoin futures open interest decreased by 1% over 24 hours to $56.56 billion. Bitcoin futures open interest on CME and Binance also decreased by over 1.90% and 1.36%, respectively.

Coingape reported that Bitcoin is currently rebounding near its 50-day moving average on the daily chart. While there were observations that crypto-related stocks might also rebound as US futures started higher, the market continues to show a cautious trend amid decreasing derivatives open interest and reduced trading volume.

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