Bitcoin's price has been stuck in a range for months, but analysts believe that it may be about to break out of this consolidation due to rising geopolitical risks. President Donald Trump's deadline to 'reign hell' on Iran is nearing, which could lead to increased violence and higher crude oil prices.
Data shows that crude oil perpetual futures have been rising in recent weeks, with the West Texas Intermediate (WTI) reaching $112 for the first time in years. This increase in price could lead to a risk-off sentiment among investors, causing them to abandon riskier assets like cryptocurrencies and seek safer havens.
The Crypto Fear and Greed Index has already slumped to the extreme fear zone of 20, indicating that investors are becoming increasingly anxious about the market's prospects. This anxiety could be exacerbated by the looming deadline, leading to a sharp drop in Bitcoin's price.