- Michael van de Poppe expects Bitcoin to retest recent lows after crashing 36% since Jan.
- The analyst’s chart shows key support around the $57,000-$57,500 price levels.
- Peter Schiff argues that war fuels inflation through larger deficits and money creation.
Bitcoin remains bearish with Fear and Greed hitting 15 on CoinMarketCap while traders mull weak market structure, sticky inflation, and rising tensions in the Middle East.
Crypto analyst Michael van de Poppe said Bitcoin has not yet made a clear decision on direction and expects another move lower in the coming days to sweep liquidity. He said there is little strength in the market and that the technical picture remains bearish unless Bitcoin can reclaim $64,000.
Inflation and War Add More Pressure
The macro backdrop has turned more difficult for risk assets. US consumer prices rose 4.2% year over year in May, reducing hopes for interest rate cuts. Some analysts now see the possibility of rate hikes later this year, but some institutions like Goldman Sachs no longer expect Federal Reserve rate cuts in 2026.
Bitcoin has already fallen 36% since January, while gold is down 23% from its peak. Oil prices, meanwhile, have surged over the same period.
It is important to note that institutional investors are unlikely to increase Bitcoin exposure until inflation shows a more convincing decline. Until new exposure and demand develop, a drop below $60,000 could be increasingly likely.
Trump-Iran Conflict Raises Inflation Risks
President Donald Trump expanded military operations against Iran this week, prompting Tehran to announce the closure of the Strait of Hormuz, one of the world’s most important oil shipping routes. The waterway normally handles about 20% of global oil and gas supplies.
The escalation has pushed oil prices higher and raised concerns about another wave of inflation.
Peter Schiff argued that wars create inflation because governments finance military spending through larger deficits instead of higher taxes. According to Schiff, central banks eventually monetize those deficits, while resources are diverted away from producing consumer goods.
Higher inflation could keep interest rates elevated for longer, creating another headwind for cryptocurrencies.
Related: Bitcoin Faces Final Stress Test as Whales Lock In $2.5B Losses
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