Bitcoin Price Forecast as BTC Falls Sharply Amid Israel-Iran War Fears and Recession Concerns

Arslan Butt

Last updated: | 3 min read

Bitcoin Price Prediction
Bitcoin Price Prediction

Amid escalating Middle Eastern tensions and recession fears, Bitcoin’s price prediction remains uncertain as BTC falls sharply.

The leading cryptocurrency has dropped below $61,940, reaching an intra-day low of $60,700, following a decline from the previous day’s high of over $65,000.

Contributing factors include the Federal Reserve’s delayed rate cuts, geopolitical instability, and reduced odds of a favorable U.S. presidential election outcome for cryptocurrency. These challenges continue to impact Bitcoin’s market performance and outlook.

Bitcoin’s 14% Drop Amid Recession Worries and Economic Indicators


Bitcoin has dropped 14% over the past five days, falling from $70,135 to $60,465, with $1 billion in liquidations, according to CoinGlass.

This decline is attributed to deteriorating global economic conditions and recession fears, especially after weak job data last Friday.

The Sahm Rule Recession Indicator reached 0.53%, exceeding the recession threshold of 0.50%, indicating potential economic downturns.

However, Peter Berezi of BCA Research noted that the Sahm Rule was not technically triggered due to rounding issues.

Meanwhile, the Joshi Rule, another recession indicator, signalled a recession with a reading of 0.23%, surpassing the critical level of 0.20%. Investors are now considering whether to buy the dip in Bitcoin amid these economic uncertainties.

How Fed’s Rate Cut Delay and Middle Eastern Tensions Affect Bitcoin


Bitcoin prices are under pressure due to the Federal Reserve delaying rate cuts and increased tensions in the Middle East. Israeli forces have raided Tulkarem in the occupied West Bank after an airstrike killed five people, including Hamas leader Haitham Balidi.

The U.S. is deploying additional fighter jets and warships to the region, fearing Iranian retaliation for the assassination of Hamas political chief Ismail Haniyeh in Tehran.

The United Nations reports significant damage in Gaza, with 39,550 killed and 91,280 wounded since October 7, and 1,139 killed in Israel.

Additionally, the Federal Reserve’s decision to delay cutting interest rates raises concerns about a potential economic slump in the coming quarter.

Consequently, these geopolitical tensions and economic uncertainties are reducing investor confidence in Bitcoin, contributing to the current market downturn.

Bitcoin Price Prediction

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.