Investing.com – Bitcoin experienced a pullback on Tuesday, retreating from gains made in the prior session as reports surfaced of Iran pushing for a ceasefire in its ongoing conflict with Israel.
The crypto market remains volatile, with the Middle East conflict showing few signs of easing and traders adopting a cautious stance ahead of this week’s Federal Reserve meeting. Market sentiment is on edge following a stern warning from U.S. President Donald Trump directed at Iran, while both Tehran and Jerusalem continue to exchange military strikes.
The cryptocurrency space showed minimal reaction to the Bank of Japan’s decision to maintain steady interest rates, with plans to scale back bond purchase reductions starting next year.
By 4:45 PM Moscow time, Bitcoin had declined 1.6% to $105,430. Despite some upward movement this week, the world’s leading cryptocurrency remains confined to a trading range observed throughout much of June.
Ongoing Israel-Iran Uncertainty, U.S. Involvement in Focus
Bitcoin continues to trade sideways, with its recent gains keeping it within the same range seen for most of June. The Israel-Iran conflict remains a key driver of pressure on risk-sensitive assets, particularly after Trump’s call for Tehran’s immediate evacuation. His remarks have fueled concerns of potential direct U.S. involvement in the conflict, which could significantly escalate tensions.
However, the White House has clarified that the U.S. will not engage directly in the conflict. According to Axios, Iranian and U.S. officials are aiming to hold talks this week regarding a nuclear deal and ceasefire, though it remains uncertain whether these discussions will proceed. Iran has also reportedly dismissed earlier claims of seeking a ceasefire.
While geopolitical tensions have a limited direct impact on crypto markets, their speculative nature makes them highly sensitive to shifts in investor sentiment.
Trump Media Seeks SEC Approval for Bitcoin and Ether ETF
Trump Media & Technology Group Corp (NASDAQ:DJT) has submitted a request to the U.S. Securities and Exchange Commission for approval to launch an exchange-traded fund (ETF) investing in both Bitcoin and Ether, according to a filing on Monday.
This marks the company’s second significant ETF application in recent weeks, following its earlier filing for a spot Bitcoin ETF in early June. However, Trump Media’s ETFs will enter a competitive U.S. crypto ETF market, which saw launches in early 2024.
Trump’s crypto ventures have drawn scrutiny due to potential conflicts of interest, given his ability to influence U.S. cryptocurrency policy directly.
Fold Secures $250M Credit Line to Boost Bitcoin Holdings
In other crypto developments, Fold, a Bitcoin-focused financial services company, announced on Tuesday that it has secured a $250 million equity purchase agreement. This deal allows the Arizona-based firm the option, but not the obligation, to issue and sell new shares, pending regulatory approval.
Fold stated that it is not required to utilize the credit line and retains control over the timing and scale of any share sales, subject to specific agreement terms. The proceeds from any share sales will primarily be used to increase Fold’s Bitcoin reserves, which currently stand at 1,490 BTC.
The credit line was arranged through Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC.
Crypto Prices Slide Amid Fed Meeting Jitters
Broader cryptocurrency prices trended downward, driven by a risk-averse mood ahead of the Federal Reserve’s meeting. The Fed is expected to keep interest rates unchanged, with investors closely watching Chair Jerome Powell for hints about potential rate cuts later this year.
Ether, the second-largest cryptocurrency, dropped 2.8% to $2,552.70, while XRP fell 1.7% to $2.21. Cardano and Solana saw declines of 3–4%, and Polygon slipped by 2.3%. Among meme tokens, Dogecoin shed over 3%, and $TRUMP plummeted by more than 4%.
Prepared with contributions from Ayushman Ojha.
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