Iran sends a heavy signal to the world! FXEmpire: Buy on dips and expect Bitcoin to rebound to 70,000

Bitcoin fluctuates at $65,000. After Iran launched an unprecedented attack on Israel, investors currently do not seem to be worried about a wider conflict in the Middle East. Market analysis believes that it is time to buy on dips and wait for the price of the currency to rebound above $70,000.

Iran sends a heavy signal to the world. The Iranian mission to the United Nations said that after launching 300 drones and missiles at Israel, Tehran now believes that its retaliation for the attack on the diplomatic building in Damascus is over. The statement said: "If Israel does not respond, the military action will be considered over."

"However, if the Israeli regime makes another mistake, Iran's response will be more severe. This is a conflict between Iran and the rogue regime in Israel, and the United States must stay away," the statement added.

Oil and stock futures traded basically flat late Sunday as financial markets reacted flatly to Iran's launch of hundreds of missiles and drones at Israel on Saturday. Major U.S. stock indexes and oil prices rose less than 0.2%, with WTI crude hovering below $86 a barrel and Brent at $90.57 a barrel.

Analysts had previously predicted that Brent could surge above $100 a barrel after having risen 20% in the past year before the attack.

Gold, traditionally seen as another safe haven asset, edged up 0.4% to $2,383 an ounce, but remained below its all-time high hit on Friday.

Another safe trade, U.S. Treasuries, sold off slightly, sending the 10-year yield up 1.9 basis points to 4.518%. Similarly, the dollar fell against the euro and the yen.

The cryptocurrency continued to fluctuate weakly around $65,500 after rebounding from losses on Saturday.

The initial muted reaction may have been due to optimism that the conflict in the Middle East would not escalate, although this marked Iran's first full-scale military attack on Israel, with 99% of the shells fired being shot down and no deaths reported.

Meanwhile, the White House said it was seeking to prevent the spread of hostilities. US President Joe Biden reportedly told Prime Minister Benjamin Netanyahu that the United States would not take part in any offensive action against Iran after pledging "ironclad" support for Israel's defense.

Increasing tensions in the Middle East could give the Federal Reserve more reason to slow the pace of rate cuts as oil prices could disrupt the central bank's fight against inflation, Capital Economics said in a report earlier on Sunday.

"The main risk to the global economy is whether this escalates into a broader regional conflict and how energy markets react," wrote Neil Shearing, chief economist at Capital Economics.

But he added that potential countervailing factors include deflationary pressures from China's recent capacity expansion, which has made its exports cheaper, and demands from some OPEC+ members to produce more crude, which would weigh on prices.

Cryptocurrency prices fell sharply late Saturday after the Iranian attack but later recovered some of their losses. Signs of market nervousness emerged early Friday when reports of an imminent Iranian attack sent U.S. benchmark oil prices up 3% to $87 a barrel.

U.S. Treasuries also surged as investors sought safety, sending the 10-year yield down as much as 10 basis points.

The dollar rose on Friday as geopolitical tensions led investors to abandon riskier emerging market currencies.

Gold prices surged to a new record high above $2,400 an ounce before reversing gains as stocks sold off on Friday, led by risky technology stocks, as investors also digested bank earnings and new inflation data that further dampened hopes of an imminent Federal Reserve rate cut.