Bitcoin dipped below the $100,000 level over the weekend, as geopolitical tensions between the US and Iran intensified. The US undertook air strikes on Iranian nuclear facilities, and Iran, in retaliation, is now threatening to close the Strait of Hormuz, a key shipping channel which could impact global markets and in particular oil prices.
As the price began falling on the back of the escalating geopolitical tensions, approximately $313 million worth of traders’ long positions were liquidated, exacerbating the price fall to $98,000, said Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro.
The sell-off was short lived however. Bitcoin is now back above $100,000 level, currently at $101,500.
Looking forward to this week we have a slew of economic data being released from the US which could provide a boost to prices. Manufacturing and Services PMI data later today, US GDP on Thursday and the latest PCE personal consumption expenditures – the Fed’s preferred inflation measure – on Friday.
Furthermore, Tuesday and Wednesday will see the Semiannual Monetary Policy Report to the Congress, where Fed Chairman Jerome Powell will be testifying before the Senate Committee on Banking, Housing, and Urban Affairs in Washington, D.C.
Markets will be keeping an eye on the above as well as geopolitical developments.
BIGGEST MOVERS
Memecoins were the biggest movers this week amid the wider sell-off in crypto markets. $WIF and $PEPE down 21%
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
US Senate passes the GENIUS Act
The US Senate passed the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act last week, a major step forward in establishing a regulatory framework for stablecoins in the United States.
The focus now shifts to the House of Representatives, which must decide whether to advance its own bill STABLE or adopt the Senate’s version.
Although crypto markets did see a small price uplift following the Senate passing the bill, stocks tied to stablecoins, in particular USDC issuer Circle and Coinbase saw their share prices significantly increase, 30% and 16% respectively.
Taking to Truth Social, President Trump was full of praise for the bill being passed, asking for it to get through the House and to his desk ASAP.
Semler Scientific announces three-year plan to own 105,000 bitcoin
Following the likes of Metaplanet, who recently announced a three-year plan to increase its total bitcoin holdings, Semler Scientific (SMLR) announced last week that it is targeting owning 10,000 bitcoin by the end of this year, 42,000 bitcoin by the end of 2026 and 105,000 bitcoin by the end of 2027.
The company currently holds 4,449 bitcoin, 0.021% of the 21 million bitcoin total existence supply.
In May 2024, Semler Scientific became the second US publicly traded company to adopt a bitcoin treasury strategy using proceeds from equity and debt financings, as well as cash flows from operations to fund its bitcoin acquisitions.
The company also announced the appointment of bitcoin advocate Joe Burnett as Director of Bitcoin Strategy.
If Semler Scientific was to reach its 105,000 bitcoin target, providing no other bitcoin treasury companies added further, it would become the second largest bitcoin treasury company in terms of holdings.
