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Bitcoin fell to $74,500 on Monday, extending its weekly decline as geopolitical tensions between Israel and Hamas, along with broader Middle East instability, weighed on risk appetite. The cryptocurrency traded below key psychological levels, with analysts noting increased volatility amid conflicting signals from major institutional investors. The drop follows a 3% weekly loss, with the price struggling to regain $75,000 resistance after a brief rebound attempt.
The decline highlights the sensitivity of crypto markets to global geopolitical events, which often drive investors toward safer assets like gold and government bonds. Traders are closely monitoring whether Bitcoin can stabilize above $73,000 support, as a breakdown below this level could trigger further selling pressure. The U.S. Federal Reserve's upcoming policy decisions also remain a critical factor, with market participants wary of potential rate hikes impacting liquidity.
For Gulf investors, the current environment underscores the need for caution in crypto positions. Regional traders should watch for developments in the Israel-Hamas conflict and U.S. inflation data, which could influence both Bitcoin's price trajectory and broader market sentiment. Technical indicators suggest a bearish bias for the short term, with key Fibonacci retracement levels becoming focal points for traders.
