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Investing.com – Prices rose on Monday, recouping some of the weekend's sharp losses, as risk appetite was hit by an Iranian attack on Israel that also pushed the dollar to a five-month high.
The price rose 1.6% to $65,439.5 in the last 24 hours after sliding as low as $61,000 over the weekend.
Bitcoin price under pressure due to unrest between Iran and Israel
Bitcoin suffered particularly from increased risk appetite after Iran launched a drone and missile attack against Israel on Saturday. This led traders to largely focus on safe havens such as the dollar and gold.
Gold prices rose to a five-and-a-half-month high, while gold prices briefly hit record highs.
The dollar's strength has been one of the main pressure points for Bitcoin, as Bitcoin typically benefits from increased risk appetite in markets. The token has largely proven itself contrary to the notion that it is a digital safe haven.
However, Bitcoin experienced some relief amid signs that the Iran-Israel conflict may not escalate further. Iran signaled it had ended its attack against Israel, while Israeli ministers also reportedly were not considering immediate retaliation.
Crypto Price Today: Altcoins recover from weekend slump, but price fluctuations weigh
Other major cryptocurrencies also rose on Monday, recovering from a weekend slump.
The world's second-largest cryptocurrency rose 3.7% to $3,187.78, while gaining 7% and 3%, respectively.
However, major gains in cryptocurrencies were also held back by the prospect of longer-term higher U.S. interest rates after higher-than-expected inflation data and the Federal Reserve issued more hawkish signals last week.
Traders were found to be largely pricing out bets that the Fed will begin cutting interest rates in June – a scenario that does not bode well for crypto markets.
Cryptocurrencies typically benefit from a low interest rate environment with high liquidity – a factor that was a key driver of the 2021 bull market.
However, gains this year have been largely Bitcoin-focused as flows into recently approved spot Bitcoin exchange-traded funds surged in US markets.
However, recent weeks have also seen a slowdown in these capital flows, leading to greater uncertainty about the potential for further gains in Bitcoin.
The token largely fluctuated between $60,000 and $70,000 for a month after hitting record highs of over $73,000 in early March.
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