Virtual Assets Scream as Oil Prices Surpass $100... "Bitcoin Must Hold $68,000 to Survive"

▲ Bitcoin (BTC)/ChatGPT generated image

With escalating geopolitical tensions in the Middle East and the looming interest rate decision by the U.S. Federal Reserve (Fed), major virtual assets, including Bitcoin, are caught in a massive vortex of volatility, facing a fateful week.

According to cryptocurrency media CoinGape on April 29 (local time), peace talks between the U.S. and Iran have reached a stalemate, bringing tensions in the Strait of Hormuz to a peak. Brent crude oil prices soared to $110 per barrel, stimulating a rise in global fertilizer and food prices and exacerbating global inflationary pressures. As the Middle East conflict enters a prolonged phase, the virtual asset market continues a listless trend with fund inflows stalled, in stark contrast to the stock market's record rally.

Market participants are showing extreme tension ahead of the Federal Reserve's interest rate decision scheduled for this week. With inflation indicators exceeding the Federal Reserve's target, fear is spreading that the high-interest rate stance may last longer than expected, freezing investment sentiment for risk assets, including Bitcoin (BTC). Large investors have turned to a wait-and-see approach, avoiding the uncertain market environment, which is deepening the market's liquidity shortage.

From a technical analysis perspective, Bitcoin has been rejected at the upper resistance line of its ascending channel and has retreated to the $76,000 level. Experts view the defense of the $68,000 support level as a critical watershed that will determine future price direction. Ethereum (ETH) has also attempted to break the $2,400 resistance level eight times, but all attempts have failed, causing deep disappointment among investors.

The U.S. Crypto-Asset Market Structure Bill (CLARITY), a key to institutional integration, is stalled by political conflict, showing no progress. Senate Democrats are demanding the inclusion of strict ethical regulations targeting the virtual asset businesses of U.S. President Donald Trump's family, delaying the bill's processing. XRP whale activity has also plummeted to its lowest level since 2021, creating a calm before the storm in the market.

The virtual asset industry is closely monitoring changes in macroeconomic indicators and the unfolding of geopolitical risks, focusing on developing countermeasures. While institutional investor fund flows are stagnant, the psychological anxiety of individual investors has reached its peak. As further consecutive declines are inevitable if major support levels collapse, risk management is more crucial than ever.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*