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President Donald Trump said the U.S. would not bomb Iran before the U.S. midterm elections. The statement contributed to a rebound in cryptocurrency prices.
What Happened in Crypto Markets
Bitcoin rose after dropping to a level near its 50-day moving average. It recovered from that low, testing resistance.
Ethereum slipped 2% over 24 hours to about $2,500, still nursing the worst of Thursday’s flush, when ether bets were wiped out at six times bitcoin’s rate relative to its market value. Solana lost nearly 4% to around $110, while XRP and HYPE were little changed.
The broader CoinDesk 20 index slipped about 2%.
Key Technical Indicators
Bitcoin touched its 50-day moving average during the week’s low. This level is often seen as a medium-term support.
Analyst Alex Kuptsikevich of FxPro noted that the price rebound confirmed buying interest during pullbacks. The 50-day moving average has performed this function admirably since July, when the price consolidated above it, and then the 50-day moving average acted as support in August.
Why the Pledge Mattered
Trump’s statement reduced geopolitical risk in the Middle East. Investors interpreted it as a signal of stability ahead of the U.S. midterms.
Geopolitical uncertainty had previously pressured markets, including crypto. The pledge helped ease that concern.
Broader Market Reactions
Brent crude oil fell below $103 a barrel on Trump’s Iran remarks, a day after hitting a two-week high. This reduced inflation-related concerns that had pushed the Fed minutes toward another interest-rate increase.
World shares were mostly higher in Europe and Asia, while oil prices fell back from recent gains. The German DAX rose 0.7%, while the CAC 40 in Paris surged 0.8%. Britain’s FTSE 100 picked up 0.7%.
What to Watch Next
Bitcoin is now testing resistance. The key support remains at its 50-week exponential moving average.
Source: CoinDesk Daybook
