Bitcoin rallies alongside equity markets as oil prices fall on Iran negotiations and the Fed maintains loose liquidity despite rate hikes.
Macro & Markets ·
Bitcoin traded near $86,559 on Tuesday, up 12.2% over the past week after breaking through a resistance level that had contained it since early September, as falling oil prices and a record Nasdaq rally lifted risk appetite across markets. Oil declined after Iran signaled willingness to reopen the Strait of Hormuz within days if the U.S. eases pressure, with Brent crude slipping below $98 a barrel. The Federal Reserve's recent 25 basis point rate hike to 3.75%-4% was accompanied by continued purchases of short-term Treasury bills to keep bank reserves ample, maintaining liquidity flows to risk assets despite the tightening move. Bitcoin's technical setup showed a golden cross pattern, with traders pricing 48% odds the asset reaches $90,000 this month.