Aggressive deleveraging
Escalations and a potential de-escalation have overshadowed all other headlines, driving sharp BTC moves culminating in a modest 1% weekly drop. During the rebound, traders exited leverage with notional OI seeing its sharpest one-day decline since Aug 5.
Preview
Bitcoin saw turbulent price action over the past week, driven by escalating and potentially de-escalating conflict in the Middle East, though it ultimately ended the week with a modest 1% drop. BTC plunged to lows of $98,200 following U.S. attacks on Iran but quickly rebounded to $105,000 after ceasefire talks emerged. While the war may seem disconnected from BTC, its broader implications on oil, inflation, and risk sentiment have weighed heavily on markets, with BTC representing one of the few liquid tradeable assets during the weekend to downsize portfolio risk. A ceasefire could restore some confidence in the market, but upcoming U.S. events such as Trump’s expansionary budget bill and the July 9 tariff deadline are poised to inject fresh uncertainty, well poised to keep BTC volatility elevated ahead.
