Wall Street Selloff Sends Warning Signal to Bitcoin

The crypto market is feeling the pressure from Wall Street's selloff and the deteriorating military situation in the Middle East. As institutional investors withdraw their capital from tech stocks, hedge funds are selling at a record pace, with total sales over the past eight weeks being the highest in at least ten years.

The conflict between the U.S. and Iran is making investors more risk-averse, causing oil prices to remain above $80 per barrel. This instability has temporarily reduced liquidity in all financial markets, affecting investments in the crypto sector.

Bitcoin's price is stuck around the key resistance level of $65,000, with repeated attempts to surpass it unsuccessful so far this July. Despite the summer seasonality effect contributing to a slowdown in momentum, analysts believe that Bitcoin's underlying trend remains positive, and a breakout above $67,000 could trigger a sustainable upward trend.