On Tuesday, the leading cryptocurrency effectively entered a wait-and-see mode. After failing to hold above the psychological $85,000 mark over the weekend, the market entered a consolidation phase. Investors are now torn between positive news from institutional investors and intense pressure from macroeconomic and geopolitical factors.
This morning, the Bitcoin (BTC) price rose slightly by 0.6%, hovering around $83,637.
Traditional finance is entering the crypto space: a signal from Citi
News from the banking sector helped boost market sentiment somewhat. One of Wall Street’s biggest giants, Citi, officially announced that it is expanding its infrastructure to handle digital assets in the Japanese and UAE markets.
This expansion indicates that institutional investors continue to integrate blockchain and crypto products into the traditional financial system, even amid general market volatility.
Government bonds and oil are putting pressure on the market.
However, full-fledged growth is not occurring due to global macroeconomic risks:
U.S. Treasury yields are at record highs. Yields on 10-year U.S. Treasuries are hovering near 19-year highs after the Fed raised rates by 25 basis points in September. When yields on risk-free securities are this high, holding risky crypto assets becomes less profitable, and liquidity dries up in the market.
Awaiting data. Traders are holding their breath in anticipation of the U.S. jobs report, which is due out this week. If the employment data comes in strong, the central bank will have even more reason to tighten monetary policy.
Geopolitics and Oil. The conflict between the U.S. and Iran over the Strait of Hormuz continues to drive oil prices higher. Donald Trump has publicly denied rumors that the U.S. might make concessions to Tehran to ensure the safety of shipping. Combined with tensions between Saudi Arabia and the Houthis, this creates serious inflationary risks.
U.S. Senate Takes on Tether: Report on Ties to Iran
Another cause for concern is a report by the Democratic Party, prepared under the leadership of Senator Richard Blumenthal.
The document identifies USDT (Tether), the largest stablecoin, as a key financial tool that helps Tehran circumvent sanctions.
An analysis of 846 crypto addresses subject to U.S. and Israeli sanctions revealed that 84% of transactions involving these addresses were conducted specifically via USDT.
According to the report, the token was actively used to move capital abroad, support the national currency through the Central Bank of Iran, and finance various regional entities. The renewed regulatory scrutiny of Tether is prompting large funds to exercise caution.
What’s Happening with Altcoins: A Slight Rebound
While Bitcoin is stabilizing, the altcoin sector has attempted a slight recovery:
Ethereum (ETH) rose 1.8% to $2,698;
XRP gained 1.6%;
Solana (SOL), Cardano (ADA), and BNB traded virtually unchanged, with no sharp fluctuations;
In the world of meme coins, the situation varies: Dogecoin (DOGE) rose by 1.5%, while the political token $TRUMP, on the contrary, fell by 1.3%.