Bitcoin Retreats After Topping $70,000 as VanEck Sees Market Forming a Bottom

Bitcoin is highly sensitive to interest rates and market liquidity. The U.S. Federal Reserve delivered its most hawkish signal in years through the Federal Open Market Committee, while the U.S.-Iran conflict increased energy and inflation risks. Investors responded by retreating from risk assets including cryptocurrencies, as oil prices climbed to their highest level since 2022.

Market analysis on May 18 showed Bitcoin falling below $76,000 and approaching $75,000, with some traders predicting a possible decline to $65,000. Recent buyers sold $770 million worth of BTC at a loss, reflecting how high oil prices, hawkish monetary policy and geopolitical tensions continue to suppress demand.

Bitcoin is often viewed as a highly volatile risk asset, yet its price has remained relatively steady as the conflict involving Iran intensifies and concerns over energy supplies and inflation mount. Markets are also awaiting the U.S. Commerce Department's PCE price index for clues on the Federal Reserve's interest-rate path, while Trump has again publicly called on the Fed to cut rates.

As of April 13, Bitcoin had broken above $72,000 and was advancing toward $73,000. BTC held above $71,000 even after Trump warned of possible strikes on Iran's oil-rich Kharg Island. Traders maintained an $80,000 price target, underscoring Bitcoin's outperformance against most macro assets weighed down by the war and economic data.