Most investors were expecting positive effects on Bitcoin following the Israeli-Hamas war because it’s considered digital gold. But during the last two days, Bitcoin’s price moved opposite to their expectations. The traditional gold, on the other hand, made a massive upside move right after it opened on Monday.
Since then, gold has been performing pretty well. Some investors are still confident that Bitcoin’s price will reverse following the impact of the Israeli-Hamas war. The following Bitcoin weekly news may shed some light on how this war and other factors may affect the price of Bitcoin over the coming days.
The Effects of the Israeli-Hamas War
Some traders are expecting a positive impact on Bitcoin while others think that Bitcoin may experience a short-term decline because it’s a riskier asset and investors avoid investing in these assets during such critical times. The critics think that the effects may get even worse if the war spreads to the nearby oil-producing countries.
That’s one of the reasons why the crypto market experienced a slight decline at the beginning of the week. However, the overall market is still showing some signs of resilience. According to historical data, the cryptocurrencies recovered after some decline following the geopolitical turmoil.
Investors need to keep an eye on the oil and energy market to evaluate the upcoming performance of Bitcoin. Other factors like tighter monetary policy and rising oil prices may also cause risks to assets like Bitcoin.
Israeli Web3 Community is Supporting the War Affectees
Members of Israel’s Web3 community have stepped forward to help affectees of Hamas attacks through a fundraising initiative called Crypto Aid Israel. The surprise attack by the Palestinian militants has severely affected thousands of Israelis. So, this aid is dedicated at providing support to those individuals.
Many renowned companies like the Israeli Blockchain Association are supporting this initiative. Hundreds of Israelis were forced to leave their homes following these attacks. Around 900 people have lost their lives during these attacks. The donors can choose between dozens of cryptocurrencies and stablecoins while sending the donations.
The donations are transferred to a crypto wallet managed by the crypto custody firm Fireblocks. According to the recent update, the donors have transferred more than $50,000 to this wallet. Further, the Israeli authorities are collaborating with crypto exchange Binance to ban the crypto wallets that have some connection with Hamas.
Bitcoin Price Prediction by Jim Cramer
Unlike the common opinion, Jim Cramer, the former hedge fund manager, has predicted that assets like gold and Bitcoin aren’t the most attractive option for investors during these times. He said that Bitcoin’s price may significantly decline in the near future. On the other hand, another hedge fund manager, Paul Tudor Jones, has claimed that gold and Bitcoin are the ideal options during geopolitical tensions.
Similarly, the U.S. government’s increasing debt also increases the importance of these assets. Cramer shared his skeptical thoughts about Bitcoin’s structure after selling his Bitcoin holdings in June 2021 following the Chinese government’s crackdown. It may be hard to digest because Bitcoin has displayed strong resistance since the beginning of the year. It’s still one of the leading assets that offered amazing gains during this year.
ARK Invest Has Updated the spot Bitcoin ETF Proposal
SEC had raised concerns about the spot Bitcoin ETF filing that ARK Invest submitted in collaboration with 21Shares. They have now amended the proposal providing additional information about the proposed ETF. Some analysts say that the proposal now has more chances of approval.
The new amendment is specifically focused on clarifying asset segregation practices along with net asset value calculations. Overall, the proposal seems to be ready for approval. However, the SEC may still raise some concerns if they aren’t satisfied.
Bitcoin Update by Binance CEO
Changpeng Zhao (CZ), the CEO of Binance, has highlighted the historical price movements of Bitcoin showing how they’re similar to the current movement. He highlighted that Bitcoin’s price surged after a consolidation period in 2016. He says that Bitcoin may make another significant move if the historical patterns are followed.
He even said that Bitcoin may make multiple all-time highs (ATHs) following old patterns. Although Bitcoin’s price movement is boring, it’s still maintaining a market cap of $528 billion. He thinks that the lack of volatility in Bitcoin is a healthy sign for Bitcoin holders.
The Effects of FOMC Meeting Minutes
FOMC meeting minutes state that the authorities may increase interest rates before the year ends. Although the members agreed to keep the interest rate restrictive for some time, the investors may expect a rate hike on November 1. Although the inflation has moderated over the past year, the members are still concerned about high inflation.
Following the FOMC meeting minutes, Bitcoin’s price dropped slightly. However, the price recovered immediately after the decline. Still, it shows that the investors may lose some confidence if the interest rate is increased in November.
Bitcoin Weekly Technical Analysis
Bitcon’s price slowly moved towards its daily resistance of $28,140 and the price started dropping after some distribution around this level. There’s a short-term support level of $26,000. But it may not sustain and the price may drop below this level as well. The investors may expect some struggle around $26,000.
But currently, the bears seem to be dominant. So, they may break the lower side of the weekly channel. Therefore, the investors must manage their portfolios accordingly.
The Israeli-Hamas conflict has brought unexpected fluctuations to Bitcoin’s price, contrary to predictions of a positive surge. Gold experienced a notable upswing. The crypto market may face short-term uncertainty due to the conflict’s risky nature. Israel’s Web3 community initiated Crypto Aid Israel to support victims, showcasing crypto’s philanthropic potential. Divergent opinions on Bitcoin’s response to geopolitical tensions emphasize the need for vigilant investor adaptation.
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