Bitcoin Could Hit $400K, Coinbase CEO Says as Iran War Threatens Rally

• BTC-USD
• CL=F
• COIN

• Coinbase CEO Brian Armstrong believes Bitcoin has bottomed and considers $400,000 a reasonable target by 2030.

• It comes as Bitcoin is nearing a “golden cross.”

• Bitcoin could fall toward $70,000 if oil remains above $100

Coinbase CEO Brian Armstrong believes Bitcoin could reach $400,000 by 2030 and has declared its latest market bottom, even as the escalating war in Iran threatens to disrupt its recovery.

In a CNBC interview, Armstrong predicted that the next year or two would be positive for BTC, supported by regulatory developments and anticipation surrounding the next halving.

However, some warn rising oil prices could fuel another inflation shock and send Bitcoin back toward $70,000 before Armstrong’s longer-term target comes into view.

Iran Conflict Sends Oil Above $108

Brent crude jumped 7.5% on Thursday to $108.83 per barrel, while West Texas Intermediate rose to $102.48 as the conflict involving Iran placed renewed pressure on global energy supplies.

The market is particularly sensitive to developments around the Strait of Hormuz and other regional shipping corridors.

Any prolonged disruption could keep oil above $100 and feed through to transport, manufacturing and consumer prices.

That matters for Bitcoin because another inflationary surge would give the Federal Reserve less room to reduce borrowing costs.

Higher rates generally make speculative investments less appealing.

The oil rally arrived alongside hotter US producer-price data and a sharp bond-market selloff.

The 10-year Treasury yield moved close to 5%, while market pricing placed the probability of a quarter-point Federal Reserve increase above 70%.

Friday’s Consumer Price Index report is therefore likely to play a central role in determining whether the Fed raises rates at its September meeting.

According to FinanceFeeds, MEXC CEO Vugar Usi Zade said Bitcoin could fall to $70,000 if interest rates rise while Brent crude remains above $100.

“The market would quickly begin to reprice the cost of liquidity for the entire fourth quarter,” Zade said.

Zade said Bitcoin could fall as far as $70,000 if the Fed raises rates while Brent remains firmly above $100.

Bitcoin Moves Toward Golden Cross

The macroeconomic pressure is developing just as Bitcoin approaches a potentially bullish technical crossover.

A golden cross occurs when a shorter-term moving average rises above a longer-term one.

Traders commonly watch the 50-day and 200-day exponential moving averages for signs that medium-term momentum is turning positive.

Source: finance.yahoo.com